{"annotation_id":"02cdf6a8-e82d-4340-af2d-ca913d04d836","file_hash":"a9b8a7bd5e3b18d2bdec10c0341f7b6e18dace2a559241f8e08465122293d783","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"cea4efac-e0f6-4219-9468-a82ccd7f377b","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":1,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"341ae38e-cf2f-46a9-8a34-9383f4eac931","block_type":"box","text":"BlackRock Funds","page_number":1,"box":{"x":371,"y":120,"width":216,"height":14}},{"id":"75a2536a-f287-4c3f-871c-ed00825e9695","block_type":"box","text":"SM","page_number":1,"box":{"x":589,"y":120,"width":19,"height":7}},{"id":"979a616a-8cad-4562-af4b-7468c3811c66","block_type":"box","text":"BlackRock Advantage International Fund","page_number":1,"box":{"x":340,"y":149,"width":298,"height":11}},{"id":"4cefebde-e584-4500-9b97-fd770f7fff0a","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":1,"box":{"x":118,"y":176,"width":742,"height":14}},{"id":"278b0ced-6368-4fb7-8dd6-d7c0cae8b611","block_type":"box","text":"This Statement of Additional Information of BlackRock Advantage International Fund (the “Fund”), a","page_number":1,"box":{"x":101,"y":233,"width":762,"height":12}},{"id":"c54c1f59-1dc9-4f63-9a7b-5d49ba2dc671","block_type":"box","text":"series of BlackRock Funds","page_number":1,"box":{"x":69,"y":249,"width":198,"height":9}},{"id":"4420525d-9a23-42cb-9654-c6d2a56c8be7","block_type":"box","text":"SM","page_number":1,"box":{"x":269,"y":249,"width":11,"height":5}},{"id":"8c8ab665-4261-4fdd-8023-f500a70a44c4","block_type":"box","text":"(the “Trust”), is not a prospectus and should be read in conjunction with the","page_number":1,"box":{"x":286,"y":248,"width":573,"height":12}},{"id":"c03be5c0-f24e-4a0b-8df8-59bf0812a774","block_type":"box","text":"Investor, Institutional, Class R, Service and Class K Shares Prospectuses of the Fund, dated","page_number":1,"box":{"x":70,"y":264,"width":689,"height":11}},{"id":"be0bb22b-da3e-4fc1-9b05-034a7b76ddf3","block_type":"box","text":"September 28, 2026, as each may be amended or supplemented from time to time (each, a “Prospectus”),","page_number":1,"box":{"x":69,"y":279,"width":804,"height":12}},{"id":"f955a79f-a962-4091-8b30-3b3da9cb6c2f","block_type":"box","text":"which have been filed with the Securities and Exchange Commission (the “Commission” or the “SEC”) and can","page_number":1,"box":{"x":68,"y":294,"width":839,"height":12}},{"id":"c148b878-7c64-4274-9886-9d16bda43fab","block_type":"box","text":"be obtained, without charge, by calling (800) 441-7762 or by writing to the Fund at the above address. 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You may request a copy of the 2026 Annual","page_number":1,"box":{"x":69,"y":430,"width":781,"height":12}},{"id":"d4f50f75-c9ef-43b5-bf26-1ad13a6eec04","block_type":"box","text":"Financial Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time","page_number":1,"box":{"x":70,"y":445,"width":820,"height":12}},{"id":"0fc6c63c-e75a-4ed2-91f7-d0bbe0f8903e","block_type":"box","text":"on any business day.","page_number":1,"box":{"x":69,"y":460,"width":157,"height":12}},{"id":"694a5ba0-d94a-465b-9e8e-bb1bebf5b1bc","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":1,"box":{"x":103,"y":483,"width":767,"height":12}},{"id":"c389a745-9449-441a-bc00-e34e7638d2dd","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":1,"box":{"x":69,"y":498,"width":796,"height":12}},{"id":"61540c7d-7298-45d9-83e6-66966951b07e","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":1,"box":{"x":70,"y":513,"width":837,"height":12}},{"id":"826d25e8-5176-49b4-bb6a-ceca0ea451fc","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":1,"box":{"x":69,"y":528,"width":749,"height":12}},{"id":"98508ba0-f07f-4894-a3f7-9dd0b98428d7","block_type":"box","text":"Commission staff or other authority.","page_number":1,"box":{"x":70,"y":543,"width":274,"height":12}},{"id":"b34516b7-3ec6-416e-89a2-8cd7578d290e","block_type":"box","text":"Class","page_number":1,"box":{"x":69,"y":572,"width":31,"height":7}},{"id":"22e709b6-f4b9-456c-8069-4d5f30ecc7d2","block_type":"box","text":"Ticker Symbol","page_number":1,"box":{"x":827,"y":572,"width":82,"height":9}},{"id":"68d8c159-dbe8-43f5-a595-80731dccf75d","block_type":"box","text":"Investor A Shares","page_number":1,"box":{"x":70,"y":590,"width":124,"height":9}},{"id":"be8f3d2d-f224-45c2-8d9c-e2c091456724","block_type":"box","text":".........................................................................","page_number":1,"box":{"x":208,"y":597,"width":588,"height":1}},{"id":"68aff06e-b0a3-4d03-a94d-ed2d3b483127","block_type":"box","text":"BROAX","page_number":1,"box":{"x":845,"y":590,"width":48,"height":9}},{"id":"d01dc84d-16b6-45b1-90bc-6353dc505ad8","block_type":"box","text":"Investor C Shares.","page_number":1,"box":{"x":70,"y":605,"width":131,"height":9}},{"id":"19e5b793-3f2e-4020-a29f-0dbaca6e9cd2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-24","page_number":2,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"a2be5be9-a452-4745-87bf-950ac260051e","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"8c59deb2-8fb3-4d05-b7b5-6da24b177cdf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":2,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"7a9325a4-b314-4935-a9b3-2ef4fd908fa3","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":2,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"2e3c398b-28a2-44bc-86c4-b8968e678729","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Accordingly, BlackRock has claimed an","page_number":7,"box":{"x":70,"y":697,"width":780,"height":12}},{"id":"9729124a-c29d-49c2-9a98-b6593b3e42e2","block_type":"box","text":"exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”)","page_number":7,"box":{"x":69,"y":712,"width":796,"height":12}},{"id":"51b0c648-39fd-40b3-acfe-7b4b9e445a9e","block_type":"box","text":"pursuant to Rule 4.5 under the CEA. BlackRock is not, therefore, subject to registration or regulation as a","page_number":7,"box":{"x":70,"y":727,"width":751,"height":12}},{"id":"aaf7724d-0369-4dd7-a380-9b2397534ce1","block_type":"box","text":"“commodity pool operator” under the CEA in respect of the Fund.","page_number":7,"box":{"x":70,"y":743,"width":461,"height":11}},{"id":"ba847d24-7b07-4f2c-bc9f-10709056f214","block_type":"box","text":"II. Investment Restrictions","page_number":7,"box":{"x":69,"y":773,"width":194,"height":9}},{"id":"feafe777-f87f-4186-812a-e47d1d215f3e","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":7,"box":{"x":101,"y":795,"width":800,"height":12}},{"id":"75c20f55-1bd9-41e2-93ec-19ebc192ea81","block_type":"box","text":"Certain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":7,"box":{"x":69,"y":811,"width":825,"height":11}},{"id":"911dbc5b-009e-47bf-975d-4766e8eb522e","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":7,"box":{"x":69,"y":826,"width":809,"height":11}},{"id":"8c40c0f0-fa95-4db4-ae35-17c9029e0a10","block_type":"box","text":"Company Act of 1940, as amended (the “Investment Company Act”), means the lesser of (i) 67% of the shares","page_number":7,"box":{"x":69,"y":841,"width":793,"height":11}},{"id":"93cddd61-8c80-4e77-a2dd-c40bac4c357a","block_type":"box","text":"represented at a meeting at which more than 50% of the outstanding shares are represented or (ii) more than 50% of","page_number":7,"box":{"x":69,"y":856,"width":839,"height":11}},{"id":"ee20e877-e952-4883-afe7-c342771414f8","block_type":"box","text":"the outstanding shares).","page_number":7,"box":{"x":68,"y":871,"width":174,"height":11}},{"id":"a2ddd4ff-661f-4663-a76c-24423564db60","block_type":"box","text":"The Fund may not purchase securities of any one issuer (other than securities issued or guaranteed by the U.S.","page_number":7,"box":{"x":101,"y":894,"width":795,"height":11}},{"id":"47b5521d-5843-44aa-9ee0-f60bea52e3fa","block_type":"box","text":"Government, its agencies or instrumentalities or certificates of deposit for any such securities) if more than 5% of","page_number":7,"box":{"x":69,"y":909,"width":814,"height":11}},{"id":"3f83597c-5090-4868-b7b1-55a70891032d","block_type":"box","text":"I-5","page_number":7,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"190510c3-4874-4312-a59c-30add3902128","block_type":"box","text":"NM1026U-5978945-7/232","page_number":7,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"a860057f-3922-45cc-b559-efe8abdda651","block_type":"box","text":"the value of the Fund’s total assets would (taken at current value) be invested in the securities of such issuer, or","page_number":8,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"e4a5d1ce-b805-46c9-a0c7-49414843a231","block_type":"box","text":"more than 10% of the issuer’s outstanding voting securities would be owned by the Fund or the Trust, except that up","page_number":8,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"2fdcd7e0-f057-47af-9f15-a855c234cf09","block_type":"box","text":"to 25% of the value of the Fund’s total assets may (taken at current value) be invested without regard to these","page_number":8,"box":{"x":68,"y":75,"width":790,"height":11}},{"id":"343621a6-611f-4f51-a574-b0ce4c48fdbb","block_type":"box","text":"limitations. For purposes of this limitation, a security is considered to be issued by the entity (or entities) whose","page_number":8,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"a2661f08-786d-43dd-9313-297b1cc67def","block_type":"box","text":"assets and revenues back the security. A guarantee of a security shall not be deemed to be a security issued by the","page_number":8,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"7253585b-92e5-4fa4-80d0-9953eb6497b9","block_type":"box","text":"guarantors when the value of all securities issued and guaranteed by the guarantor, and owned by the Fund, does not","page_number":8,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"1b28b89d-3656-4a2e-bf2a-3792548a2ee0","block_type":"box","text":"exceed 10% of the value of the Fund’s total assets.","page_number":8,"box":{"x":69,"y":135,"width":366,"height":9}},{"id":"47f09000-af3d-43ae-9f8a-4415b3d06d07","block_type":"box","text":"The Fund may not issue senior securities, borrow money or pledge its assets, except that the Fund may borrow","page_number":8,"box":{"x":101,"y":158,"width":793,"height":11}},{"id":"70b17f4a-2cb2-4883-9149-fefae59ff6e7","block_type":"box","text":"from banks or enter into reverse repurchase agreements or dollar rolls in amounts aggregating not more than 33","page_number":8,"box":{"x":68,"y":173,"width":805,"height":11}},{"id":"8d2713c8-fdc4-43cc-9756-d047c4036843","block_type":"box","text":"1⁄","page_number":8,"box":{"x":875,"y":173,"width":5,"height":6}},{"id":"8aa514b2-29d4-4f94-92d2-7e2824fb5ec8","block_type":"box","text":"1⁄3","page_number":8,"box":{"x":878,"y":173,"width":8,"height":9}},{"id":"a7dab193-f985-4695-b87c-ffe851a92167","block_type":"box","text":"⁄3","page_number":8,"box":{"x":884,"y":177,"width":6,"height":5}},{"id":"7557c5f3-9d72-4093-924e-4643a7cdb76c","block_type":"box","text":"%","page_number":8,"box":{"x":891,"y":173,"width":10,"height":9}},{"id":"e8378237-2e86-4414-b171-49588d755bdd","block_type":"box","text":"of the value of its total assets (calculated when the loan is made) to take advantage of investment opportunities and","page_number":8,"box":{"x":69,"y":188,"width":834,"height":12}},{"id":"63e3c8e4-fdb3-4553-9d7d-e82e83707188","block_type":"box","text":"may pledge up to 33","page_number":8,"box":{"x":69,"y":203,"width":146,"height":12}},{"id":"c831f822-c230-4da2-8d4d-165779a0734e","block_type":"box","text":"1⁄","page_number":8,"box":{"x":216,"y":204,"width":6,"height":5}},{"id":"6769c053-44c6-49e0-a694-bbc53740686b","block_type":"box","text":"1⁄3","page_number":8,"box":{"x":220,"y":204,"width":8,"height":8}},{"id":"946eaeb9-3c6e-4221-a88f-29f39434d803","block_type":"box","text":"⁄3","page_number":8,"box":{"x":225,"y":207,"width":6,"height":5}},{"id":"7c7f4f07-6d5f-4a18-94d0-44d2f268c37f","block_type":"box","text":"% of the value of its total assets to secure such borrowings. The Fund is also authorized to","page_number":8,"box":{"x":232,"y":203,"width":648,"height":12}},{"id":"2c7c6fcd-f5a1-4c5e-ad14-6481a5608825","block_type":"box","text":"borrow an additional 5% of its total assets without regard to the foregoing limitations for temporary purposes such as","page_number":8,"box":{"x":69,"y":218,"width":838,"height":12}},{"id":"807545c6-2f0f-440a-ba5e-c64699c024bb","block_type":"box","text":"clearance of portfolio transactions and share redemptions. For purposes of these restrictions, the purchase or sale","page_number":8,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"24b4b812-f790-4249-a8d0-6a60ed26bdb3","block_type":"box","text":"of securities on a “when-issued,” delayed delivery or forward commitment basis, the purchase and sale of options","page_number":8,"box":{"x":69,"y":249,"width":816,"height":11}},{"id":"dcb5c2dd-2d16-4d69-b43e-f3e793cc46e8","block_type":"box","text":"and futures contracts and collateral arrangements with respect thereto are not deemed to be the issuance of a","page_number":8,"box":{"x":69,"y":264,"width":793,"height":11}},{"id":"25340523-6217-41a4-8c16-2b43e381dfac","block_type":"box","text":"senior security, a borrowing or a pledge of assets.","page_number":8,"box":{"x":69,"y":279,"width":355,"height":11}},{"id":"82ba77d2-0ca5-435b-803c-6863b60bbf41","block_type":"box","text":"The Fund may not:","page_number":8,"box":{"x":101,"y":302,"width":130,"height":11}},{"id":"5459752d-ea7c-413a-8776-e05cf4f93f04","block_type":"box","text":"1. Purchase any securities which would cause 25% or more of the value of the Fund’s total assets at the","page_number":8,"box":{"x":135,"y":324,"width":746,"height":11}},{"id":"dbd1120e-ff30-4c8f-b45c-549a0ff8d7cb","block_type":"box","text":"time of purchase to be invested in the securities of one or more issuers conducting their principal business","page_number":8,"box":{"x":101,"y":339,"width":766,"height":12}},{"id":"bcc884d4-a6b0-4325-a48c-c975ee5e53af","block_type":"box","text":"activities in the same industry, provided that (a) there is no limitation with respect to (i) instruments issued or","page_number":8,"box":{"x":102,"y":355,"width":784,"height":11}},{"id":"d00337d7-0aaa-4fd3-8ce7-7501b3da75f0","block_type":"box","text":"guaranteed by the United States and tax exempt instruments issued by any state, territory or possession of the","page_number":8,"box":{"x":101,"y":370,"width":797,"height":11}},{"id":"4fbf3c2d-f493-4882-b479-8205e8686ade","block_type":"box","text":"United States, the District of Columbia or any of their authorities, agencies, instrumentalities or political","page_number":8,"box":{"x":102,"y":385,"width":740,"height":11}},{"id":"53760f9a-5a42-4c92-8e5f-44a76f77e521","block_type":"box","text":"subdivisions, and (ii) repurchase agreements secured by the instruments described in clause (i); (b) wholly","page_number":8,"box":{"x":102,"y":400,"width":763,"height":11}},{"id":"baa2210e-552e-44aa-b83b-29c7c5689c29","block_type":"box","text":"owned finance companies will be considered to be in the industries of their parents if their activities are primarily","page_number":8,"box":{"x":102,"y":415,"width":806,"height":11}},{"id":"ab00c959-e73e-4f73-91b0-94fedf30ce9a","block_type":"box","text":"related to financing the activities of the parents; and (c) utilities will be divided according to their services; for","page_number":8,"box":{"x":102,"y":430,"width":781,"height":11}},{"id":"c5911164-6dcf-41d8-b7f8-cf350b728910","block_type":"box","text":"example, gas, gas transmission, electric and gas, electric and telephone will each be considered a separate","page_number":8,"box":{"x":101,"y":446,"width":772,"height":11}},{"id":"d02069ca-3440-4a63-9c5e-3291b648f319","block_type":"box","text":"industry.","page_number":8,"box":{"x":102,"y":461,"width":59,"height":11}},{"id":"5e040a77-efc6-4d03-96ab-c17c17b2acec","block_type":"box","text":"2. Purchase or sell real estate, except that the Fund may purchase securities of issuers which deal in real","page_number":8,"box":{"x":134,"y":483,"width":755,"height":11}},{"id":"aacdd988-e266-4625-a7d9-83e1f630c6de","block_type":"box","text":"estate and may purchase securities which are secured by interests in real estate.","page_number":8,"box":{"x":101,"y":498,"width":582,"height":11}},{"id":"061e8464-61aa-4464-a204-e001add99430","block_type":"box","text":"3. Acquire any other investment company or investment company security except in connection with a","page_number":8,"box":{"x":134,"y":521,"width":723,"height":11}},{"id":"06e5a4f3-e5d5-421f-9389-13f0440ae908","block_type":"box","text":"merger, consolidation, reorganization or acquisition of assets or where otherwise permitted by the Investment","page_number":8,"box":{"x":102,"y":536,"width":784,"height":11}},{"id":"ff5a9313-b40a-400c-bfa9-aa405208936c","block_type":"box","text":"Company Act.","page_number":8,"box":{"x":102,"y":551,"width":95,"height":11}},{"id":"dfb28a36-ba0b-4c98-b932-69f98467ce94","block_type":"box","text":"4. Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":8,"box":{"x":134,"y":574,"width":771,"height":11}},{"id":"3c285596-04a3-4ca2-8e12-54016fe0da6d","block_type":"box","text":"to the extent that the purchase of obligations directly from the issuer thereof, or the disposition of securities, in","page_number":8,"box":{"x":101,"y":589,"width":797,"height":11}},{"id":"b60f7a92-6a0c-46fe-9545-47fa1d94689a","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":8,"box":{"x":102,"y":604,"width":777,"height":11}},{"id":"b8895feb-c5ac-47db-9580-c8cbde855c78","block_type":"box","text":"5. Write or sell put options, call options, straddles, spreads, currencies or any combination thereof, except","page_number":8,"box":{"x":134,"y":627,"width":762,"height":11}},{"id":"81ab62f1-0b6a-4c14-afaf-aab9327c3936","block_type":"box","text":"for transactions in options on securities and securities indices, futures contracts and options on futures","page_number":8,"box":{"x":101,"y":642,"width":743,"height":11}},{"id":"8f0ad650-50a3-4513-84fb-b0ae77f1b583","block_type":"box","text":"contracts.","page_number":8,"box":{"x":101,"y":658,"width":69,"height":8}},{"id":"b9ff4f53-fad4-44ab-81e9-5e64c173738f","block_type":"box","text":"6. Purchase securities of companies for the purpose of exercising control.","page_number":8,"box":{"x":134,"y":680,"width":527,"height":11}},{"id":"3fe5d9a9-4016-489f-8cd6-89d953522493","block_type":"box","text":"7. Purchase securities on margin, make short sales of securities or maintain a short position, except that","page_number":8,"box":{"x":135,"y":702,"width":756,"height":12}},{"id":"d9854277-eb11-49f4-9c62-f5eb4d96564b","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":8,"box":{"x":102,"y":717,"width":791,"height":12}},{"id":"b8f4baac-be43-4f3e-8b84-caf88d28d8ef","block_type":"box","text":"or the Fund’s sale of securities short against the box, and (b) the Fund may obtain short-term credit as may be","page_number":8,"box":{"x":102,"y":732,"width":790,"height":12}},{"id":"ca6ac1b0-f3aa-43e8-a456-b6fd3f58eddd","block_type":"box","text":"necessary for the clearance of purchases and sales of portfolio securities.","page_number":8,"box":{"x":102,"y":748,"width":531,"height":11}},{"id":"616c02cb-236f-414e-907a-a5bc7012d18c","block_type":"box","text":"8. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":8,"box":{"x":134,"y":770,"width":707,"height":12}},{"id":"3a7d09fa-cf8b-451f-a3ae-410f43543cff","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":8,"box":{"x":102,"y":785,"width":795,"height":12}},{"id":"83ac2ab8-6800-4062-981e-e20eb5537777","block_type":"box","text":"companies engaging in whole or in part in such activities and may enter into futures contracts and related","page_number":8,"box":{"x":101,"y":801,"width":755,"height":11}},{"id":"82547fc7-108d-4264-99f6-535c34f3a422","block_type":"box","text":"options.","page_number":8,"box":{"x":102,"y":816,"width":55,"height":11}},{"id":"4cd17b23-aa0d-4412-9c88-4764c733f806","block_type":"box","text":"9. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":8,"box":{"x":134,"y":838,"width":745,"height":11}},{"id":"5df16b17-e6d4-4654-86e5-4c963e44c74c","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend portfolio securities.","page_number":8,"box":{"x":102,"y":853,"width":729,"height":12}},{"id":"1612b4cb-dfc4-4793-8013-a5d093763be6","block_type":"box","text":"10. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":8,"box":{"x":135,"y":876,"width":735,"height":11}},{"id":"ec08a56c-8439-4669-803f-1d97bb61c79a","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in part in such activities, may engage in","page_number":8,"box":{"x":102,"y":891,"width":744,"height":12}},{"id":"ef048f93-77b2-4e74-b0fc-d152c0828c67","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":8,"box":{"x":101,"y":906,"width":565,"height":12}},{"id":"00c2b424-066c-4945-a525-330587e864f8","block_type":"box","text":"I-6","page_number":8,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"d69961b2-719c-4c17-ae57-d5f28da68f8c","block_type":"box","text":"NM1026U-5978945-8/232","page_number":8,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"84eda58e-2dd6-43cd-b232-1ffb14eef25a","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":9,"box":{"x":102,"y":45,"width":494,"height":11}},{"id":"bed52534-18e5-4849-8766-39edc9b362bd","block_type":"box","text":"The following notations are not considered to be part of the Fund’s fundamental investment restrictions and are","page_number":9,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"5a514d6b-c5b6-4d45-99ff-9a1b20e085f2","block_type":"box","text":"subject to change without shareholder approval.","page_number":9,"box":{"x":69,"y":83,"width":341,"height":11}},{"id":"c4a411c3-13eb-4213-a00a-dc49d1f5e2d2","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":9,"box":{"x":102,"y":105,"width":768,"height":11}},{"id":"adddc4ce-bc7c-4216-933b-3f8d2743381c","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":9,"box":{"x":69,"y":120,"width":817,"height":12}},{"id":"f10c7612-a964-481e-964b-183d717bb0d7","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":9,"box":{"x":70,"y":135,"width":817,"height":12}},{"id":"96d3a84a-4d55-4ac8-b556-cac934ecc7bf","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":9,"box":{"x":69,"y":150,"width":597,"height":12}},{"id":"0d9d973c-55c4-4b80-9563-88d0b2635d31","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":9,"box":{"x":101,"y":173,"width":795,"height":11}},{"id":"91d54006-b72d-44f7-b935-b30b28f6bda6","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":9,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"c5936ee5-4115-4910-91fc-e4e192203ec4","block_type":"box","text":"certain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":9,"box":{"x":69,"y":203,"width":790,"height":12}},{"id":"e8fb406c-d1c9-4f61-a860-d8679970da3f","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":9,"box":{"x":69,"y":219,"width":828,"height":11}},{"id":"4b903f55-46c6-41ed-8f7c-6a5769da2c02","block_type":"box","text":"Certain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":9,"box":{"x":69,"y":234,"width":805,"height":11}},{"id":"6281d7ff-ad6c-4943-b171-ed9c98aceee7","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f–4 under the Investment Company Act, when the Fund engaged","page_number":9,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"ab62bee0-ef25-4a82-a08e-190bc30e9165","block_type":"box","text":"in a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":9,"box":{"x":70,"y":264,"width":766,"height":11}},{"id":"a23562d9-dbb6-40bf-a092-8439777af1a3","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":9,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"6b577b68-0aae-444b-b0da-d01ce3d2e469","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark to market basis, to the transaction, instead of meeting","page_number":9,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"1b575042-ee41-4fe3-9294-ab161da43d97","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":9,"box":{"x":68,"y":309,"width":840,"height":11}},{"id":"696311d9-82f5-4e5c-9130-68ffe8752ce2","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f–4, and the Fund now","page_number":9,"box":{"x":69,"y":324,"width":822,"height":12}},{"id":"423b81ab-2235-441e-9302-d938fbff17d5","block_type":"box","text":"complies with Rule 18f–4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":9,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"f2397506-0794-4af0-9f73-96b486c63ecf","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":9,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"0b0af4a4-c313-417d-a11a-44d0928f7aaf","block_type":"box","text":"securities so long as the Fund complies with Rule 18f–4 with respect to such derivatives transactions.","page_number":9,"box":{"x":69,"y":370,"width":728,"height":11}},{"id":"4cd32ec6-5d37-431a-aab6-5386d48a087c","block_type":"box","text":"While certain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":9,"box":{"x":101,"y":392,"width":793,"height":12}},{"id":"a51ff6fa-8924-4b31-8ee9-3ae0f25255f6","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 5, 8 and 10","page_number":9,"box":{"x":68,"y":407,"width":796,"height":11}},{"id":"fda7341b-5074-40a8-9b4f-3e3b6dfe60e0","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":9,"box":{"x":69,"y":423,"width":752,"height":11}},{"id":"aace1d20-afc8-4a75-bffd-87be3b2bc2cd","block_type":"box","text":"Accordingly, fundamental investment restriction no. 5, which does not restrict transactions in options on securities","page_number":9,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"9a7cfd43-009e-4072-a678-29e8b3b1c907","block_type":"box","text":"and securities indices, and fundamental investment restrictions no. 8 and 10 are being interpreted to permit the","page_number":9,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"2418a362-4b60-44b8-ab41-64555ae0f4fc","block_type":"box","text":"Fund to engage in transactions in swaps and options on swaps, as applicable, related to financial instruments, such","page_number":9,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"a3ea5dc2-df4f-4471-a011-832869036aae","block_type":"box","text":"as securities, securities indices and currencies, but not to engage in transactions in swaps or options on swaps","page_number":9,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"0b7c3f81-31be-46cc-82b1-d114a63b76bf","block_type":"box","text":"related to physical commodities, such as oil or metals.","page_number":9,"box":{"x":69,"y":498,"width":390,"height":11}},{"id":"4ebc820e-7318-4bc6-8b49-3e6afe3cb59c","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":9,"box":{"x":102,"y":521,"width":768,"height":11}},{"id":"324a60a6-06f0-4b76-89a5-c7ee982b285c","block_type":"box","text":"approval, the Fund may not:","page_number":9,"box":{"x":69,"y":536,"width":197,"height":11}},{"id":"ffd6eab0-26a8-4413-8cac-2f2c64692358","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":9,"box":{"x":134,"y":559,"width":742,"height":11}},{"id":"a54e49d2-95a7-4020-ba7f-f9c289998839","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":9,"box":{"x":102,"y":574,"width":759,"height":11}},{"id":"13691286-cd29-44c2-b435-7b3ce3fb7917","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":9,"box":{"x":102,"y":589,"width":779,"height":11}},{"id":"2e90df61-2b1a-45c8-8e7a-0606de48ae2b","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":9,"box":{"x":101,"y":604,"width":761,"height":11}},{"id":"7e20fb4c-2141-492f-a975-766deac711ba","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":9,"box":{"x":102,"y":619,"width":795,"height":11}},{"id":"4c977a08-98b7-4fd4-9383-4d86f6288937","block_type":"box","text":"12(d)(1).","page_number":9,"box":{"x":102,"y":634,"width":60,"height":11}},{"id":"24dbee02-8259-47b4-a478-c9d61162c81b","block_type":"box","text":"Unless otherwise indicated, or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":9,"box":{"x":102,"y":657,"width":776,"height":11}},{"id":"aaa9223f-b39b-4244-8246-35e0566d45a3","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":9,"box":{"x":69,"y":672,"width":822,"height":11}},{"id":"decd140e-fdad-415c-ab5b-0c38dfd2a4a9","block_type":"box","text":"the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested in certain","page_number":9,"box":{"x":68,"y":687,"width":803,"height":11}},{"id":"d0af967d-768a-45f5-9d4f-6285edd300b7","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":9,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"adb669ee-0bc7-440b-a994-da5c1b9622f9","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":9,"box":{"x":69,"y":717,"width":833,"height":11}},{"id":"b9f94cf9-f434-416d-aa02-45102b32af1f","block_type":"box","text":"investment without undue market or tax consequences.","page_number":9,"box":{"x":70,"y":733,"width":393,"height":10}},{"id":"a8da8037-c044-43ca-bd80-c0579bfbcbaf","block_type":"box","text":"III. Information on Trustees and Officers","page_number":9,"box":{"x":69,"y":763,"width":290,"height":9}},{"id":"b200e28c-cbd8-49c9-82c4-5b9db1733ca5","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thirteen of whom are not “interested persons” of","page_number":9,"box":{"x":101,"y":785,"width":788,"height":11}},{"id":"6cfa9856-f96b-477c-af31-6fc5734ea8ae","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":9,"box":{"x":68,"y":801,"width":779,"height":11}},{"id":"8df1821d-c3de-4637-aa24-6852819dba79","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":9,"box":{"x":69,"y":816,"width":837,"height":11}},{"id":"788fdea3-2c53-47c1-b3a6-5c841bfb3e82","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":9,"box":{"x":70,"y":831,"width":793,"height":11}},{"id":"a95f57b8-48ab-4e16-939f-bf4a6ccf0b83","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":9,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"e73f08e1-3291-457c-a723-05ab65ea5275","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":9,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"5bbeab99-cfca-443e-a3a0-18de0622029e","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":9,"box":{"x":70,"y":876,"width":335,"height":11}},{"id":"5e1fc472-0aae-4747-9c00-edc964e9db25","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"130d4c33-b359-4404-979d-ac8c3314bccd","block_type":"box","text":"NM1026U-5978945-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"660560d2-dfae-4a0f-a219-eac5d0a38b69","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":10,"box":{"x":101,"y":45,"width":769,"height":11}},{"id":"cab46647-a1c4-4dff-87f0-b104af599047","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":10,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"a3e9572a-828f-4333-beca-c9d1822d07b7","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":10,"box":{"x":70,"y":75,"width":821,"height":11}},{"id":"da96e6af-d157-4d20-b130-f14e3fde6c4c","block_type":"box","text":"Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":10,"box":{"x":69,"y":90,"width":835,"height":11}},{"id":"5c8af085-f01c-454f-90dd-5ef56436c18d","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":10,"box":{"x":70,"y":105,"width":830,"height":11}},{"id":"664a4c21-ad0c-44d2-8dfe-c3aba29f2a09","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":10,"box":{"x":68,"y":120,"width":789,"height":12}},{"id":"1da617c2-4fbc-455d-9c7d-19dc9ebb0ed3","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":10,"box":{"x":69,"y":135,"width":810,"height":11}},{"id":"ba90e6ce-093f-4a7f-8519-00aa60bf8937","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":10,"box":{"x":69,"y":150,"width":809,"height":12}},{"id":"624e8665-f774-4155-871c-2479aa55e41a","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":10,"box":{"x":70,"y":166,"width":794,"height":11}},{"id":"be0026ec-a749-4dad-9b92-a51eba390311","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":10,"box":{"x":69,"y":181,"width":816,"height":11}},{"id":"145231d5-3a65-4aef-9b2d-d2e9d6b46759","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":10,"box":{"x":69,"y":196,"width":831,"height":11}},{"id":"266ca1f7-05c5-4a8f-860b-5c6cc15597b8","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":10,"box":{"x":70,"y":211,"width":811,"height":11}},{"id":"7b5db103-cb15-41d9-819f-f812e3c2475f","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":10,"box":{"x":68,"y":226,"width":809,"height":11}},{"id":"6420b08d-d052-4acb-afd5-eb04993dfdd1","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":10,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"bcc1faa0-e2bf-4683-9c10-12fe14eaccf8","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":10,"box":{"x":69,"y":256,"width":441,"height":12}},{"id":"b6466b92-e665-4edd-b6f2-e77ad6696acd","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":10,"box":{"x":101,"y":279,"width":777,"height":11}},{"id":"d6ee4b85-aa44-4180-8458-a7fa7530ff32","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":10,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"b9c37c68-8e67-46d7-b8bf-b4406d67f5e9","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s charter, and the Fund’s","page_number":10,"box":{"x":68,"y":309,"width":820,"height":11}},{"id":"ba217309-3d21-48f8-95ea-d0f67c851bdc","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":10,"box":{"x":70,"y":324,"width":812,"height":12}},{"id":"d0417571-cf0d-478f-80eb-fa4104f31fd3","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":10,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"a6cc00fe-dc91-4933-be68-c9021c37c317","block_type":"box","text":"the operations of the Fund.","page_number":10,"box":{"x":68,"y":355,"width":192,"height":11}},{"id":"1b9ebb19-c07a-4fe8-9332-3495d0363123","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":10,"box":{"x":102,"y":377,"width":785,"height":12}},{"id":"60ce14d2-b6ed-4c95-90f8-f3fc2632be03","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":10,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"1e7eb6d2-7ae6-40e8-80ef-bdc66fa9b75e","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":10,"box":{"x":69,"y":407,"width":832,"height":12}},{"id":"a13374e8-5ca5-4a90-8d44-7dfbeb07ae4f","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":10,"box":{"x":68,"y":423,"width":820,"height":11}},{"id":"0bf0c594-12a9-4099-a10f-1210b3dd548e","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":10,"box":{"x":70,"y":438,"width":811,"height":11}},{"id":"a2a1756c-e6fe-4318-9563-4a25c63d2e06","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":10,"box":{"x":70,"y":453,"width":767,"height":11}},{"id":"7286c9fe-4c41-4b4c-9031-260fd73ed9e7","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":10,"box":{"x":69,"y":468,"width":815,"height":11}},{"id":"0056f454-8c6c-45e7-b07b-3b43c749f71d","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":10,"box":{"x":70,"y":483,"width":803,"height":11}},{"id":"a38562d3-6eb0-478c-a095-ceae888d9016","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":10,"box":{"x":69,"y":498,"width":840,"height":11}},{"id":"fef67240-83a0-4bf2-9c30-f8dfcc10b49e","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":10,"box":{"x":69,"y":513,"width":812,"height":11}},{"id":"9acb0ac0-b980-444c-a783-7ec601ac1883","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":10,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"fac4ff17-9236-4d85-b67d-6c38a9e46f4e","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":10,"box":{"x":69,"y":543,"width":812,"height":11}},{"id":"c851306f-b18a-4e7b-ae80-5b623d6b454d","block_type":"box","text":"testing of the Trust’s compliance program and reports to the Board regarding compliance matters for the Fund and","page_number":10,"box":{"x":68,"y":559,"width":818,"height":11}},{"id":"c303023a-5392-4de9-8c0f-b08ddbbfd906","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":10,"box":{"x":70,"y":574,"width":759,"height":11}},{"id":"30e3cbab-0581-4df9-9185-677be89c24cf","block_type":"box","text":"performing their oversight responsibilities.","page_number":10,"box":{"x":70,"y":589,"width":299,"height":11}},{"id":"2f9eb071-a49e-4ac6-9c34-7c02d7f58be5","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":612,"width":122,"height":9}},{"id":"200abfa0-cfd8-484d-acc0-964bbfc6c87a","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":612,"width":673,"height":11}},{"id":"7b0ddc6c-e284-47d3-891a-d8108f289c13","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":10,"box":{"x":68,"y":627,"width":831,"height":11}},{"id":"b1c7de3b-53f5-43ff-b4a5-f8fdb125021f","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":10,"box":{"x":68,"y":642,"width":820,"height":11}},{"id":"dee2a5b6-4656-4fa0-ad40-c314ed5b7629","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":10,"box":{"x":68,"y":657,"width":823,"height":11}},{"id":"89c54a0c-87ae-4b06-a66e-1000fef0ab54","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"0c5496af-9ea2-440d-a904-098d76b7c7cb","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":10,"box":{"x":70,"y":687,"width":825,"height":11}},{"id":"6fb6a075-7be6-45be-86d8-381d97857eb6","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":10,"box":{"x":70,"y":702,"width":807,"height":12}},{"id":"b67c7e7b-979f-49ea-a0ec-11964fa77e7d","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":10,"box":{"x":68,"y":717,"width":781,"height":11}},{"id":"a5f8adde-5597-4866-8f34-0b2064af1b79","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":10,"box":{"x":69,"y":733,"width":834,"height":11}},{"id":"2bd79ea0-4bb9-450b-b596-eaf1629c52f3","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":10,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"7b1256e6-8240-446a-8958-56a08b49221c","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":763,"width":825,"height":11}},{"id":"09c35a29-825d-417f-bd72-d2f47d3efb41","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":10,"box":{"x":70,"y":778,"width":809,"height":11}},{"id":"10e9599d-03d1-484b-9509-8e525e7c851c","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":10,"box":{"x":70,"y":793,"width":815,"height":11}},{"id":"7105500e-0962-4b6c-b2c8-b67ef5f8a4d8","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":10,"box":{"x":69,"y":808,"width":774,"height":11}},{"id":"83cc6b8d-bae2-448b-95f3-d354ca4775ea","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":10,"box":{"x":69,"y":823,"width":815,"height":12}},{"id":"3ddf7d0a-e224-4c35-b558-0b37d4eec01a","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":10,"box":{"x":69,"y":838,"width":819,"height":12}},{"id":"7e9b68f5-f43a-44a7-a00c-5bf0b000c73d","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":10,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"caade48c-b997-464d-a6b9-0646b2d78877","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":10,"box":{"x":70,"y":869,"width":574,"height":11}},{"id":"20a7e59c-b611-4df2-b08b-85540cb9b21b","block_type":"box","text":"Governance and Nominating Committee.","page_number":10,"box":{"x":102,"y":891,"width":286,"height":12}},{"id":"269b3aba-df49-4801-8b16-2a4e12219db4","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":10,"box":{"x":394,"y":891,"width":464,"height":12}},{"id":"2f3515e6-9798-40c8-aa95-5e696da2975d","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":10,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"a4f203be-11d8-458d-985c-60d5199d4417","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"9a0cd363-f274-4011-89e8-088871d96f9c","block_type":"box","text":"NM1026U-5978945-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ea74a10c-c2b7-40da-9920-597c451a7080","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":11,"box":{"x":70,"y":45,"width":784,"height":11}},{"id":"024db9f5-bd9b-4a37-97de-3aa0807faae8","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":11,"box":{"x":69,"y":60,"width":803,"height":11}},{"id":"3b707258-e7b0-4b8d-a482-293cb6b4155b","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":11,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"28948179-0fda-4fe9-bb84-ccf03cf893e0","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":11,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"4c903e78-9604-4830-9c63-ccc30927bf84","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":11,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"1c2b7e68-2ecb-4314-917a-6f3dcd75b54f","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":120,"width":838,"height":12}},{"id":"d3780e14-dd14-4473-a8e1-d844815c7cbc","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":11,"box":{"x":69,"y":135,"width":800,"height":11}},{"id":"7d9c7efd-cd71-4171-a6a6-9bce48b66a72","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":11,"box":{"x":70,"y":150,"width":813,"height":11}},{"id":"540a2fb7-e1fa-4801-98c2-11af59a17e4e","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from","page_number":11,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"639b1a32-a4dd-4cd9-b962-b2ff685227f0","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":11,"box":{"x":68,"y":181,"width":804,"height":11}},{"id":"e659ba60-e29e-4308-9bc3-70bb44df35de","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Code of","page_number":11,"box":{"x":69,"y":196,"width":791,"height":11}},{"id":"0f2330f8-28d3-4fe8-9137-19263354f46b","block_type":"box","text":"Regulations (“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a Trustee","page_number":11,"box":{"x":70,"y":211,"width":826,"height":11}},{"id":"d82cf298-3825-46e3-a5af-d7f7bf3b61c4","block_type":"box","text":"at a shareholder meeting at which Trustees are to be elected. Under these advance notice procedures, notice of the","page_number":11,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"317e1766-10a8-43b7-bf52-2a9e65bf4dc3","block_type":"box","text":"proposed nominee to the Secretary of the Trust must be delivered to or mailed and received at the principal","page_number":11,"box":{"x":70,"y":241,"width":767,"height":11}},{"id":"3accd6b4-7457-4bf3-bb66-b0fc3b87a2ee","block_type":"box","text":"executive offices of the Trust not later than the close of business on the fifth day following the day on which notice of","page_number":11,"box":{"x":69,"y":256,"width":837,"height":12}},{"id":"93890726-d723-4907-8fea-4011922e4eb9","block_type":"box","text":"the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever first occurs.","page_number":11,"box":{"x":68,"y":271,"width":834,"height":12}},{"id":"ab25e1b0-818a-4ecf-8cd2-2e0e39b5d13d","block_type":"box","text":"The Trust’s Bylaws provide that notice of a proposed nomination must include certain information about the","page_number":11,"box":{"x":68,"y":286,"width":770,"height":12}},{"id":"0e4eb9a3-3af2-4dcf-8745-a2f6d0890303","block_type":"box","text":"shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":11,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"b47c53ea-ca2b-49e5-bce3-42c6c3c5ed75","block_type":"box","text":"nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board has adopted a","page_number":11,"box":{"x":69,"y":317,"width":801,"height":11}},{"id":"d6bd1e89-206f-4908-9c60-7b66e3cb9af6","block_type":"box","text":"written charter for the Governance Committee. During the fiscal year ended May 31, 2026, the Governance","page_number":11,"box":{"x":68,"y":332,"width":765,"height":11}},{"id":"0f2c62e4-9e1d-442a-86e5-0d97998e196f","block_type":"box","text":"Committee met ten times.","page_number":11,"box":{"x":69,"y":347,"width":185,"height":9}},{"id":"515d38a1-806b-49bb-985e-dfd47634f2fe","block_type":"box","text":"Compliance Committee.","page_number":11,"box":{"x":102,"y":370,"width":168,"height":11}},{"id":"5739dca6-ee08-4e0c-b735-30f6a69db7a6","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":11,"box":{"x":276,"y":370,"width":629,"height":11}},{"id":"07f0b2da-75d8-457e-af74-6e37a3a4c411","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":11,"box":{"x":68,"y":385,"width":828,"height":11}},{"id":"59663040-2570-49c7-9359-be902b98fadf","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":11,"box":{"x":68,"y":400,"width":771,"height":11}},{"id":"fb121eda-2c65-40b0-a1db-82f37a1057d9","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":11,"box":{"x":69,"y":415,"width":835,"height":11}},{"id":"ae458ee8-7d0f-48b1-9878-5384a4fe2452","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-party service providers. The Compliance Committee’s","page_number":11,"box":{"x":70,"y":430,"width":754,"height":11}},{"id":"7a39feea-f0a8-4cb2-86eb-8b630ada7bf5","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":11,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"b69f8acf-127b-481b-be8d-87879634b50e","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":11,"box":{"x":69,"y":460,"width":815,"height":12}},{"id":"4dbf094d-691c-4f2c-8428-28ed59a4e85a","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":11,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"33218207-bb90-45fd-ae37-56179695175b","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":11,"box":{"x":69,"y":491,"width":811,"height":11}},{"id":"cac0ab46-83b1-45be-af88-dd49322d77c4","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":11,"box":{"x":69,"y":506,"width":812,"height":11}},{"id":"dd4b96ec-edfd-43bd-b94c-0906d13e9b44","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":11,"box":{"x":69,"y":521,"width":812,"height":11}},{"id":"e6c8dcb7-06b1-4aca-a9a7-84ef38ff2452","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":11,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"2af74c70-9ea1-4406-9a1a-13403391bf44","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":11,"box":{"x":69,"y":551,"width":811,"height":11}},{"id":"4ad1d588-a1ca-4d8c-a29e-7093a8857f0f","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":68,"y":566,"width":502,"height":11}},{"id":"84f3744c-982d-446a-89f7-f73a7362be06","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":589,"width":248,"height":11}},{"id":"a83a0d42-cca0-4fd3-972c-3e1ba2e874ee","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":11,"box":{"x":356,"y":589,"width":531,"height":11}},{"id":"497e48f5-49fc-4738-bf5b-a4819f64a1ba","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"a0caf906-34dc-4f35-a546-e24afd108ce7","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":619,"width":830,"height":11}},{"id":"d57894d1-f57c-4631-848a-741953c1c945","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":11,"box":{"x":68,"y":634,"width":832,"height":12}},{"id":"57854633-defe-49cd-828e-a426241ec46e","block_type":"box","text":"upon performance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":649,"width":816,"height":12}},{"id":"3b43caf5-1247-4d2f-a1a3-5c45c45f1d80","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":664,"width":782,"height":12}},{"id":"6c3e29d8-0355-41b7-8c88-a10a165a3b26","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":11,"box":{"x":70,"y":680,"width":829,"height":11}},{"id":"e7710a3e-5b05-4397-a50a-bdb3b190e251","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":695,"width":816,"height":11}},{"id":"352b9862-5e1f-4667-8c1f-70e18e02ee72","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":11,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"3ba29126-0078-458e-8a7e-c918df96276b","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":11,"box":{"x":69,"y":725,"width":827,"height":11}},{"id":"2cdedfc0-b3eb-44c8-bbc9-f7144e5fcc4f","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":11,"box":{"x":68,"y":740,"width":811,"height":11}},{"id":"885195d4-c816-453b-ac0a-47b682c24a22","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":11,"box":{"x":69,"y":755,"width":757,"height":11}},{"id":"8d57279f-f174-4462-b16d-33038901de81","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":11,"box":{"x":70,"y":770,"width":835,"height":11}},{"id":"f70ad855-1120-4844-abe1-c7ece8b74758","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":11,"box":{"x":68,"y":785,"width":800,"height":12}},{"id":"4d1faef6-94d8-43e3-8bc8-3312ced51ebd","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":11,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"091fcf94-b2f0-447f-94ed-b1d01675b584","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":11,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"0797bcbc-ff00-4c41-a8bd-a919b9df95f7","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":11,"box":{"x":69,"y":831,"width":544,"height":11}},{"id":"a7d3d157-8fce-46fd-b8f3-597071267f3d","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":11,"box":{"x":101,"y":854,"width":186,"height":10}},{"id":"aa3e3918-718b-41c7-979c-ca29cb8f58fd","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":11,"box":{"x":293,"y":853,"width":598,"height":11}},{"id":"f8ab0d02-ad55-468b-befe-a06235b7bf73","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":11,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"1f37650c-1a69-4e77-a250-b4d52d3da7f8","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":11,"box":{"x":69,"y":884,"width":795,"height":11}},{"id":"9b481c22-ee4a-4f09-8788-ca92cd8cc76a","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":11,"box":{"x":69,"y":899,"width":788,"height":11}},{"id":"3973c9b8-aec2-4eda-b4a6-8e6bd37d24cf","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"ef5ed326-1aff-454b-bae2-6f42a4478a7d","block_type":"box","text":"NM1026U-5978945-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"68f718ea-c094-41c6-8686-dc452501a527","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":12,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"2a68ccbd-915d-4288-a351-c45526b6fc4a","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":12,"box":{"x":68,"y":60,"width":816,"height":11}},{"id":"169c181d-1ee8-4f67-848b-ab2e94476c90","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":12,"box":{"x":68,"y":75,"width":575,"height":11}},{"id":"7f197cdf-0ef9-4220-a67b-f6d3714397f4","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":12,"box":{"x":101,"y":98,"width":771,"height":11}},{"id":"93f2e761-7b12-4226-b16f-2bdb0791c7dd","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":12,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"f841f5e0-f166-4d21-ad49-c46d47119c4e","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":12,"box":{"x":69,"y":128,"width":830,"height":11}},{"id":"064e9297-169d-4de5-adc4-ec21d6e85cbc","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":12,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"cb2022ee-5c2f-4216-bb02-489e7a4bca1d","block_type":"box","text":"in determining that a particular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":158,"width":807,"height":11}},{"id":"36109dd4-a035-43fa-aec2-9a8384cc333f","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":12,"box":{"x":70,"y":173,"width":787,"height":11}},{"id":"2233768c-9e0e-4b32-9b9b-602cd852fc5a","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":12,"box":{"x":69,"y":188,"width":805,"height":11}},{"id":"e12c6555-e6b2-4147-978c-6271de6a3d6d","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":12,"box":{"x":68,"y":203,"width":794,"height":12}},{"id":"3092e1cc-df82-42b3-ac75-7994abee3a9d","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":12,"box":{"x":68,"y":219,"width":829,"height":11}},{"id":"34a8c2e1-d4dc-4fe2-b002-1b7a90235d43","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":12,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"aa1719a4-b4fb-4991-8667-99ed9be38bd9","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":12,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"79882ce6-1b30-4d55-bde3-2fb3b16a7bdb","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":12,"box":{"x":69,"y":264,"width":473,"height":11}},{"id":"e34c6d54-f2d5-4c2d-a8f6-a9343c38b40d","block_type":"box","text":"Each Trustee’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":12,"box":{"x":102,"y":286,"width":792,"height":12}},{"id":"56c7fe77-66d4-4d4d-8088-778db8b603e2","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":12,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"237c946a-c82c-4cc8-9460-6462cd0c1cc5","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":12,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"dce1338e-956e-4b9c-bb00-682ce907c165","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":12,"box":{"x":70,"y":332,"width":759,"height":11}},{"id":"d42af46d-5b26-4612-ad02-c0ddb1ea0240","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":12,"box":{"x":70,"y":347,"width":685,"height":11}},{"id":"4695c80c-6415-44b9-8e20-24089a4d567a","block_type":"box","text":"ad hoc","page_number":12,"box":{"x":762,"y":347,"width":47,"height":9}},{"id":"9f00b567-7be8-4e8f-b1da-e324793f9344","block_type":"box","text":"committees","page_number":12,"box":{"x":814,"y":347,"width":82,"height":9}},{"id":"d6c90b8c-dd08-45c8-9c9f-7d5725b7acde","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":12,"box":{"x":68,"y":362,"width":395,"height":11}},{"id":"b368eec2-7d2f-4888-b765-b7c899f3ab44","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":12,"box":{"x":101,"y":385,"width":751,"height":11}},{"id":"d6c2700e-bc8a-40ac-b958-e82e4e87fa28","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":12,"box":{"x":69,"y":400,"width":492,"height":11}},{"id":"a9101502-75eb-4867-9c13-a24f07e6659b","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":12,"box":{"x":68,"y":428,"width":409,"height":9}},{"id":"59018670-140c-4bcc-930f-3eb3ba842048","block_type":"box","text":"Independent Trustees","page_number":12,"box":{"x":70,"y":445,"width":154,"height":11}},{"id":"505d319a-8b8d-41fd-ad2b-0cb522347ed4","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":460,"width":781,"height":11}},{"id":"9705fd71-40a0-473a-aa61-f86502eb5db5","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":475,"width":604,"height":11}},{"id":"4e0ab237-785b-4371-8e8a-78621cb71fad","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":490,"width":623,"height":11}},{"id":"a3475481-c9a8-43d7-b8b7-7682f163c393","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":505,"width":637,"height":11}},{"id":"7229c3c0-190f-4e43-a3c7-59501670767a","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":520,"width":631,"height":12}},{"id":"3a4256cd-aea7-4e04-895f-4fa8ea08579e","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":12,"box":{"x":264,"y":535,"width":626,"height":11}},{"id":"4fb45f7d-055b-4309-86fd-427e584efd74","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":550,"width":639,"height":11}},{"id":"4923624a-218c-46a2-a27e-b9ebd11d1163","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":566,"width":637,"height":11}},{"id":"ca35cab9-1375-439b-a887-c6e0f1a6b82d","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":581,"width":586,"height":11}},{"id":"da051907-d161-4c17-9808-44936cd059b6","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":12,"box":{"x":265,"y":596,"width":640,"height":11}},{"id":"a4ef13d3-7e13-450e-a381-89996ff5483d","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":12,"box":{"x":265,"y":611,"width":389,"height":11}},{"id":"c289cdf6-5e8c-4548-b848-b0ffd41cf3c7","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":12,"box":{"x":69,"y":634,"width":806,"height":11}},{"id":"810fc14e-cc88-4262-88dd-b8a8b5cbc71e","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":12,"box":{"x":265,"y":649,"width":604,"height":11}},{"id":"a710b3fd-e4b9-4479-b61d-edb112948759","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":12,"box":{"x":265,"y":664,"width":632,"height":11}},{"id":"39cfbdc2-d058-4db2-8f42-798bb4649598","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":12,"box":{"x":265,"y":679,"width":562,"height":9}},{"id":"b2f27df7-350d-4ae7-863f-7a972e63babb","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":12,"box":{"x":265,"y":694,"width":616,"height":11}},{"id":"9005065f-3ea6-4385-a9f7-ccbf2817834b","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":12,"box":{"x":264,"y":709,"width":591,"height":11}},{"id":"5afb3d86-1b7a-4bf4-b809-3bed212fc72b","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":12,"box":{"x":265,"y":724,"width":641,"height":11}},{"id":"3038b460-b3d0-41dd-b538-3873be472637","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":12,"box":{"x":264,"y":739,"width":638,"height":12}},{"id":"be082a3d-490f-4d1b-9353-1530e1940610","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":12,"box":{"x":265,"y":755,"width":584,"height":11}},{"id":"85e571f5-15c4-46ad-8d73-75f0c66bda23","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":12,"box":{"x":265,"y":770,"width":630,"height":11}},{"id":"1761f747-0d51-4fce-8a93-cfd27f791773","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":12,"box":{"x":265,"y":785,"width":634,"height":11}},{"id":"1a84accc-6d73-478a-aa1e-57cb0106aa2e","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":12,"box":{"x":265,"y":800,"width":599,"height":11}},{"id":"5dcbd8eb-82b6-44aa-9473-86513db15f08","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":815,"width":407,"height":11}},{"id":"199a7402-465c-4e4e-8a34-8afb9b5c5979","block_type":"box","text":"I-10","page_number":12,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f7d4b9d0-98c9-46dd-b71f-325353e5cb92","block_type":"box","text":"NM1026U-5978945-12/232","page_number":12,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3f92e131-f057-462c-968a-5e7f99eb2ad5","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":13,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"3fd8f29f-e45a-43b9-8d4c-51d58f0ee85f","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":13,"box":{"x":69,"y":65,"width":837,"height":12}},{"id":"ac3dc0e0-9f0e-4ad5-af5f-213ae7241195","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":13,"box":{"x":265,"y":81,"width":638,"height":11}},{"id":"709f206f-1d05-437d-801f-71e7473a1c7a","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":13,"box":{"x":265,"y":96,"width":642,"height":11}},{"id":"98e28d0e-d00c-466f-be32-846cf29effef","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":13,"box":{"x":265,"y":110,"width":601,"height":12}},{"id":"50a89fd4-bfb9-49d5-beaf-20cbd203fbb1","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":13,"box":{"x":265,"y":126,"width":595,"height":11}},{"id":"324c747d-5d53-40d0-a186-18686f1c6be5","block_type":"box","text":"perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":141,"width":323,"height":11}},{"id":"f8293cd4-772f-4bf4-a059-7eb166c65835","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":164,"width":798,"height":11}},{"id":"71253a6d-2eec-441f-8cd5-6cb4eb7c3c77","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":13,"box":{"x":265,"y":179,"width":631,"height":11}},{"id":"49b1fed0-8250-42f2-bba5-27a83877c347","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":194,"width":633,"height":11}},{"id":"cef7507b-2752-4ad9-83ef-d8fd00a4c0db","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":209,"width":628,"height":11}},{"id":"8203ea48-6ca1-4b1f-8693-eb9ebea6af3d","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":13,"box":{"x":265,"y":224,"width":596,"height":11}},{"id":"63f8771b-aa9d-444b-8bba-fecbc3ffcefb","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":13,"box":{"x":265,"y":239,"width":616,"height":11}},{"id":"5ead6176-02e9-4713-aded-2d972d288463","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":13,"box":{"x":264,"y":254,"width":368,"height":11}},{"id":"e113da59-de5a-4f5e-9cea-3487fc429778","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":13,"box":{"x":69,"y":277,"width":777,"height":11}},{"id":"23e58cf8-f692-4f82-b1ae-bf7bd65bb424","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":13,"box":{"x":265,"y":292,"width":613,"height":11}},{"id":"4f9e0d7e-631b-42cf-aa4a-dc715f4b71e0","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":13,"box":{"x":265,"y":307,"width":563,"height":12}},{"id":"54b26109-4cc9-4cef-8106-2d9b7bf7a426","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":13,"box":{"x":265,"y":323,"width":607,"height":11}},{"id":"3fd70be3-f3cd-4db4-b251-cd4fcd2dc7e5","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":13,"box":{"x":265,"y":338,"width":638,"height":11}},{"id":"dde67e0b-487f-4228-b5af-aa39fd472d08","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":13,"box":{"x":265,"y":353,"width":626,"height":11}},{"id":"a856f9e6-5bca-4030-9f53-ef134aff02b6","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":13,"box":{"x":265,"y":368,"width":563,"height":11}},{"id":"5ab9faa0-1a52-4b41-a392-0efbc3a64d6e","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":13,"box":{"x":265,"y":383,"width":625,"height":11}},{"id":"fc4686cb-d2fa-4599-9b8d-bea5fed4fc17","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":13,"box":{"x":265,"y":398,"width":625,"height":11}},{"id":"481c2bc6-14a1-4999-9063-21825d92ee8e","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":13,"box":{"x":265,"y":413,"width":623,"height":11}},{"id":"a8d7ed26-5a7b-4353-94c5-87b2d0671355","block_type":"box","text":"rules.","page_number":13,"box":{"x":265,"y":428,"width":38,"height":9}},{"id":"acd0bfbf-6017-4c59-bd8b-5b0d24eb64de","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":13,"box":{"x":70,"y":451,"width":806,"height":11}},{"id":"d28305b8-bb98-4161-aab3-e39f4b4ec689","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":466,"width":584,"height":11}},{"id":"dbf9a308-a73b-4212-a54e-6d5a90f7cabd","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":13,"box":{"x":265,"y":481,"width":622,"height":11}},{"id":"d4a34375-80a3-4a8e-9cbe-36648f6a08b3","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":496,"width":638,"height":12}},{"id":"21df18a4-fdbf-4d50-ad3d-a7f8a895cd42","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":511,"width":570,"height":12}},{"id":"4cb4c6e0-2395-438d-981e-a71f503f2bfe","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":526,"width":642,"height":12}},{"id":"6d8d8bd0-b0d6-44ca-9523-c7484caa0ab7","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":542,"width":626,"height":11}},{"id":"fdba16cd-025c-4a34-958b-33737b86ba4d","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":557,"width":630,"height":11}},{"id":"1c1d4b46-1536-4bc0-82f7-772fafc89993","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":572,"width":602,"height":11}},{"id":"6e36f53c-1d06-4ac8-98df-a1898954d369","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":587,"width":643,"height":11}},{"id":"3be28145-02bc-47ea-8ed1-80b537c23a21","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":602,"width":639,"height":11}},{"id":"1dc6fe5b-591f-48ce-bf51-1d18ec0c639e","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":13,"box":{"x":264,"y":617,"width":641,"height":11}},{"id":"278d8cf1-b305-4eff-b814-783133b4d418","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":632,"width":208,"height":11}},{"id":"6773edcb-83aa-49bb-b422-c0c70ed64c85","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":13,"box":{"x":69,"y":655,"width":769,"height":11}},{"id":"3eff78f8-5967-4195-855f-1aa39d4167ea","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":13,"box":{"x":265,"y":670,"width":621,"height":11}},{"id":"aa8f7797-549c-4e64-9f81-8c131802d672","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":13,"box":{"x":265,"y":685,"width":599,"height":12}},{"id":"aed1fb70-ff01-40b4-829f-c38cb1742abe","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":13,"box":{"x":265,"y":700,"width":641,"height":12}},{"id":"950b5bf6-0634-4635-b50a-6080d78c47d6","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":13,"box":{"x":264,"y":715,"width":602,"height":12}},{"id":"b7a870bc-3369-4da2-b532-644fa72c839a","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":13,"box":{"x":264,"y":731,"width":617,"height":11}},{"id":"bae55c85-1a74-40cc-801e-e405cdae60bc","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":13,"box":{"x":265,"y":746,"width":629,"height":11}},{"id":"1520290b-354b-416b-91a9-9935c806935f","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":13,"box":{"x":264,"y":761,"width":628,"height":11}},{"id":"bf397808-e5da-4c5e-aa83-1c23895fa27b","block_type":"box","text":"articles and books on these topics.","page_number":13,"box":{"x":265,"y":776,"width":251,"height":11}},{"id":"e6a30789-aade-441e-b87e-e3041af9ff9f","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":13,"box":{"x":70,"y":799,"width":764,"height":11}},{"id":"a614bf5c-519b-4320-9fe2-9fa16efa12fd","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":13,"box":{"x":265,"y":814,"width":642,"height":11}},{"id":"734dff9b-8585-4e91-9763-3dbbcfd36a7d","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":13,"box":{"x":264,"y":829,"width":593,"height":11}},{"id":"cd24cd3c-26b2-48a0-8bee-9873586863c7","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":13,"box":{"x":265,"y":844,"width":603,"height":11}},{"id":"589ca71c-230f-482d-825f-0e5a53af3ef8","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":13,"box":{"x":265,"y":859,"width":629,"height":11}},{"id":"3a57b2d5-472f-4501-9654-a420565ee602","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"23c01c2c-2770-437d-8dc1-998e145bc6ff","block_type":"box","text":"NM1026U-5978945-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ed533781-8221-482f-b334-00d18ebd2e3c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"b7e7ebcd-f9ff-45d4-a5ea-b29c47a62efa","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":14,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"59d26e77-347d-49ce-9b38-c0161c99be4e","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":14,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"0de73958-6c17-4c52-aea2-4fdfd897618d","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":14,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"9b5e3c1a-d83b-469c-a1de-a272488e8b31","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":14,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"d9a225cd-7f32-4c68-bc34-c007290471d3","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":14,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"8902f314-8562-402c-a10d-6317bd27b00e","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":14,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"1b7f350e-a733-462a-b467-c487b9cee53d","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":14,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"0aae4f45-6981-4b05-8bca-11561d8a10b4","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":14,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"bab44002-8675-40ed-9830-9b5d27a04614","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":14,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"6a9bf55d-a02d-421b-8780-5a32445f10bb","block_type":"box","text":"maintained relationships with regulators. 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At PwC, she assisted a","page_number":14,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"aca60c00-5396-4724-9af5-7a506ceeec2e","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":14,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"028b05b0-924e-4d82-9cc6-63b9a3f8e212","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":14,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"d373f858-31b1-4ce6-9581-3034d8ac4908","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":14,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"00938edd-31f5-4d60-9da9-a2493b476ea6","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":14,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"21488836-04a9-46a6-85cb-491d6abcf354","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":14,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"329d808d-9eca-4830-aafc-5ccbd53bf718","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":14,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"43674ceb-3f2d-49cd-978c-20aaecbe1635","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":14,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"0674773d-4542-4510-912f-f86f2d3dacca","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":14,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"8b8aa729-aafc-41e1-87f9-5e830ad7ff99","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":14,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"e089468e-bca9-4add-a249-21685a897b70","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":14,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"8de84050-2f65-4840-8876-541606c6a811","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":14,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"a91a6201-f38d-4f32-a8aa-fbc7c263b540","block_type":"box","text":"various private and non-profit boards.","page_number":14,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"fe2a0bb4-042f-47fe-a81d-d9b4f21329ff","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":14,"box":{"x":70,"y":519,"width":833,"height":11}},{"id":"e1930747-a89c-4012-9ab7-c5beeb85eb50","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":14,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"0c411450-1f8b-4d6c-926d-96d6556f608a","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":14,"box":{"x":265,"y":549,"width":608,"height":11}},{"id":"5ef52987-d6d6-46aa-b553-02b2c61b3cdd","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":14,"box":{"x":264,"y":564,"width":645,"height":11}},{"id":"485eca99-9b45-4fbe-b3c8-05c0a2d6b1ba","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":14,"box":{"x":264,"y":579,"width":639,"height":9}},{"id":"4cd33069-6d4e-475b-9e78-5590bff27662","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":14,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"ded40202-dd3c-4c20-9af0-0547bd3abe2c","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":14,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"3de95a8a-7209-4454-9800-12da3aec72b5","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":14,"box":{"x":265,"y":625,"width":610,"height":11}},{"id":"14dfd4c8-b4dd-4eae-8ab4-b0ea7e4ab5c9","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":14,"box":{"x":265,"y":640,"width":642,"height":11}},{"id":"611d898c-3cf9-4002-b228-60e292f94c34","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":14,"box":{"x":265,"y":655,"width":583,"height":11}},{"id":"79a3ac5f-c197-4042-920f-b46d9927701a","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":14,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"e39ce4e8-3a86-4d63-86ef-d267975c8bfd","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":14,"box":{"x":70,"y":693,"width":807,"height":11}},{"id":"5938d15b-e70c-4bdb-a7f5-327117ed800c","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":14,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"b325c1b9-378d-4b35-9a38-6991292d1cf8","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":14,"box":{"x":265,"y":723,"width":618,"height":11}},{"id":"6a35d4b0-1482-4466-9382-0118e7e3ae76","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":14,"box":{"x":265,"y":738,"width":594,"height":11}},{"id":"6d69802e-14e3-430a-9581-b6467d96b4ee","block_type":"box","text":"accounting and consulting firm. 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Walton Claire A. Walton has over 25 years of experience in investment management. 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Mr. Fairbairn also","page_number":15,"box":{"x":265,"y":360,"width":620,"height":12}},{"id":"d6456a03-4422-459c-a924-0285f283ecbc","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":15,"box":{"x":265,"y":375,"width":578,"height":11}},{"id":"63184486-8c00-4778-b906-bbe49a13782c","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":15,"box":{"x":69,"y":398,"width":800,"height":11}},{"id":"1578c9bb-3bd1-4f3e-bd46-04d63bf0d69d","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":15,"box":{"x":265,"y":413,"width":593,"height":11}},{"id":"5016fa95-227c-4651-bfb3-9fa8fbf4564a","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":15,"box":{"x":265,"y":428,"width":633,"height":11}},{"id":"700a97cd-4527-4819-970e-bfffe38530e9","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":15,"box":{"x":265,"y":443,"width":542,"height":12}},{"id":"d66e79d0-3304-4c40-8b21-1aff3ebf6256","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":15,"box":{"x":265,"y":458,"width":617,"height":12}},{"id":"afe90838-7e2c-4820-82e8-615e2653f4c6","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":15,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"349c7eea-e163-4ad9-acdc-d3812e4e30e1","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":15,"box":{"x":265,"y":489,"width":616,"height":11}},{"id":"3e30f485-fb1c-48ab-b76a-757e5171189f","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":15,"box":{"x":265,"y":504,"width":639,"height":11}},{"id":"57973daf-1063-4737-a4d9-64fa7202bdc9","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":15,"box":{"x":265,"y":519,"width":603,"height":9}},{"id":"0a240e37-aa10-4a11-9fe2-f01a2da015c5","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":15,"box":{"x":265,"y":534,"width":582,"height":11}},{"id":"40f8a3a7-8c72-4269-b8f9-3fa1499970fb","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":15,"box":{"x":265,"y":549,"width":632,"height":11}},{"id":"6bc2e0a5-3519-4d99-9f83-ecb8bff449f1","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":15,"box":{"x":264,"y":564,"width":572,"height":11}},{"id":"dbbd2f4e-0208-4a2b-9f78-4958697d2a7f","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":15,"box":{"x":265,"y":580,"width":294,"height":8}},{"id":"04b29503-967c-49e6-be51-53d7e46d18aa","block_type":"box","text":"Biographical Information","page_number":15,"box":{"x":69,"y":611,"width":178,"height":11}},{"id":"e73b9d29-1370-4d86-b2ec-04800d82f956","block_type":"box","text":"Certain biographical and other information relating to the Trustees of the Trust is set forth below, including their","page_number":15,"box":{"x":102,"y":634,"width":798,"height":11}},{"id":"57209784-d4e3-4b28-8a68-f259b26a7bb2","block_type":"box","text":"address and year of birth, principal occupations for at least the last five years, length of time served, total number 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":765,"width":465,"height":11}},{"id":"137158d5-bd6b-4d60-b800-60cfd79da52c","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":633,"y":764,"width":254,"height":11}},{"id":"dd292364-5d44-4864-8988-369daf7fb4e5","block_type":"box","text":"Jeffrey Jarczyk* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":78,"y":780,"width":466,"height":11}},{"id":"22bd44dc-fde7-4a45-9846-9d5b7a355c15","block_type":"box","text":"None None","page_number":20,"box":{"x":633,"y":780,"width":217,"height":9}},{"id":"508d29b8-371e-435d-9471-c6b538499c92","block_type":"box","text":"Henry R. Keizer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":795,"width":465,"height":11}},{"id":"74ebd3c7-c8b3-4452-83a4-e0650471fd6a","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":633,"y":794,"width":254,"height":11}},{"id":"b879576d-7d94-4412-9ccd-58cb9cd1a7d7","block_type":"box","text":"Cynthia A. Montgomery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":810,"width":465,"height":11}},{"id":"16e84bc4-d387-4e71-9ce6-949d1ba35753","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":633,"y":809,"width":254,"height":11}},{"id":"84bf20b4-4f5e-47c8-a886-180e2f01c131","block_type":"box","text":"Donald C. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":871,"width":465,"height":8}},{"id":"877933c5-db9b-42f2-9a3a-7f9e2f0a43c1","block_type":"box","text":"None None","page_number":20,"box":{"x":633,"y":871,"width":217,"height":8}},{"id":"21223cf4-d71c-4805-9e80-73d500b29b87","block_type":"box","text":"Kenneth L. Urish","page_number":20,"box":{"x":79,"y":886,"width":117,"height":9}},{"id":"d095ae7d-25e3-4e62-ab2a-84a62f1ff8b1","block_type":"box","text":"...........................................","page_number":20,"box":{"x":200,"y":893,"width":344,"height":1}},{"id":"3e761f9f-e3fa-4a32-9763-e7d159001e9a","block_type":"box","text":"$50,001 - $100,000 Over $100,000","page_number":20,"box":{"x":576,"y":885,"width":311,"height":11}},{"id":"fe734657-8476-4d61-b871-c71c5c6d11d2","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":901,"width":465,"height":9}},{"id":"0da3d22d-5602-4958-88db-438e3230746c","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":633,"y":900,"width":254,"height":11}},{"id":"7cfec814-b419-4f42-9265-4a3d5ebc0d56","block_type":"box","text":"I-18","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"eb5328bd-4cb1-4448-8c79-0d5d7e4e360b","block_type":"box","text":"NM1026U-5978945-20/232","page_number":20,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2931659a-65a9-4087-a336-6aeaac29f0e3","block_type":"box","text":"Name","page_number":21,"box":{"x":69,"y":69,"width":32,"height":7}},{"id":"954017a8-9d0e-4bd1-b1b3-738099c7f8e2","block_type":"box","text":"Dollar Range of Equity","page_number":21,"box":{"x":586,"y":59,"width":129,"height":9}},{"id":"a59cbd4a-e696-4c86-94ba-f202bb0986c8","block_type":"box","text":"Securities in the Fund","page_number":21,"box":{"x":586,"y":69,"width":128,"height":7}},{"id":"1c732aec-0dde-403e-90f7-c26f6c51cd15","block_type":"box","text":"Aggregate Dollar Range of","page_number":21,"box":{"x":755,"y":49,"width":155,"height":9}},{"id":"6f25293f-dbb3-4ba2-bedd-a4ed3e5c4d09","block_type":"box","text":"Equity Securities in","page_number":21,"box":{"x":776,"y":59,"width":112,"height":9}},{"id":"6e921ce9-ddd6-449c-9a3b-1975c2b310fd","block_type":"box","text":"Supervised Funds","page_number":21,"box":{"x":781,"y":69,"width":102,"height":9}},{"id":"b198ecf7-d0f7-4d24-82a0-289877708a49","block_type":"box","text":"Interested Trustees","page_number":21,"box":{"x":70,"y":102,"width":138,"height":9}},{"id":"be947bd7-d680-45af-954c-4530bd1343b9","block_type":"box","text":"Robert Fairbairn","page_number":21,"box":{"x":79,"y":117,"width":113,"height":9}},{"id":"466169d5-8f4e-4ca1-82cc-5ce57867a7a8","block_type":"box","text":"...........................................","page_number":21,"box":{"x":200,"y":125,"width":344,"height":1}},{"id":"ab890c10-a960-405d-809e-394fb2d67d77","block_type":"box","text":"None Over $100,000","page_number":21,"box":{"x":633,"y":116,"width":254,"height":12}},{"id":"e66e1f56-084d-4816-bc2f-3021eb5c7545","block_type":"box","text":"John M. Perlowski. . .","page_number":21,"box":{"x":78,"y":132,"width":149,"height":9}},{"id":"37995e4f-6859-4b44-b476-e99e9e7f3acf","block_type":"box","text":".......................................","page_number":21,"box":{"x":233,"y":140,"width":311,"height":1}},{"id":"8a2a2a57-a0fe-473d-ae52-35876450f57a","block_type":"box","text":"None Over $100,000","page_number":21,"box":{"x":633,"y":132,"width":254,"height":11}},{"id":"35c09a3b-ae12-4322-b8be-c6b71616520e","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":21,"box":{"x":70,"y":157,"width":782,"height":9}},{"id":"5977f114-1f4d-4588-a889-e63bcbac3065","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":21,"box":{"x":101,"y":178,"width":767,"height":11}},{"id":"7fda98fd-1d5e-41ae-b3ce-d88d9b784dd0","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":21,"box":{"x":69,"y":193,"width":819,"height":11}},{"id":"563d7d1c-5f81-420f-9bc3-6334a8cde22d","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026) none of the Independent Trustees of the Trust or","page_number":21,"box":{"x":69,"y":208,"width":834,"height":11}},{"id":"e7950e29-2cc5-4aca-aa49-c7e920fb4424","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":21,"box":{"x":68,"y":223,"width":798,"height":11}},{"id":"956a72e3-df97-49eb-9314-c242864c415f","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":21,"box":{"x":70,"y":238,"width":831,"height":11}},{"id":"1795f376-44bb-4ea5-bf2c-148ae16790c8","block_type":"box","text":"entities.","page_number":21,"box":{"x":69,"y":253,"width":56,"height":9}},{"id":"c5993afc-8b21-48e5-81de-c0104b6ee1e9","block_type":"box","text":"Compensation of Trustees","page_number":21,"box":{"x":69,"y":283,"width":190,"height":11}},{"id":"9729118c-7e16-47ae-85b3-2fd4dd1907bf","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":21,"box":{"x":102,"y":305,"width":791,"height":12}},{"id":"2c7c5dc0-f264-4134-9410-e6d42182e6e4","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":21,"box":{"x":68,"y":321,"width":810,"height":11}},{"id":"2163fa24-fb0e-43db-b040-958f3975cf6a","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":21,"box":{"x":70,"y":336,"width":838,"height":12}},{"id":"cc54a218-463f-41e4-bdc6-db8a1be8a6a3","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":21,"box":{"x":69,"y":351,"width":807,"height":12}},{"id":"223eaa30-94fd-41f8-be98-9eb4ef6a2368","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":21,"box":{"x":69,"y":366,"width":791,"height":12}},{"id":"a4e70156-8d55-47c5-8575-4e2ad5b51cfc","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":21,"box":{"x":68,"y":382,"width":786,"height":11}},{"id":"e407f30d-e44e-4ece-b1c6-df3375f147cb","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":21,"box":{"x":69,"y":397,"width":769,"height":11}},{"id":"39bcad5f-fd07-4853-bc59-c0db4f89e3dd","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":21,"box":{"x":69,"y":412,"width":778,"height":11}},{"id":"ae96cdd3-146f-4539-b3ca-2846a1121e82","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":21,"box":{"x":69,"y":426,"width":689,"height":12}},{"id":"353c43f6-b562-4358-bc76-90d4349dad1f","block_type":"box","text":"The following table sets forth the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":21,"box":{"x":101,"y":450,"width":776,"height":11}},{"id":"58746b49-5be1-45b0-9298-c43cfaae21f6","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":21,"box":{"x":68,"y":465,"width":841,"height":11}},{"id":"acbd45a2-b822-4a64-9033-9b83b66bd266","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":21,"box":{"x":69,"y":480,"width":298,"height":11}},{"id":"cb166ead-b255-43f4-a788-c0879c89a427","block_type":"box","text":"Name","page_number":21,"box":{"x":69,"y":559,"width":32,"height":7}},{"id":"8f2a0b82-6ca6-4189-9aa3-c5cb430a5f1a","block_type":"box","text":"Compensation","page_number":21,"box":{"x":575,"y":549,"width":83,"height":8}},{"id":"2de56d12-729e-4521-937b-aac146061806","block_type":"box","text":"from the Fund","page_number":21,"box":{"x":576,"y":559,"width":80,"height":7}},{"id":"9c538cf0-25c2-4ac9-8325-547faff1e6e0","block_type":"box","text":"Estimated","page_number":21,"box":{"x":699,"y":528,"width":58,"height":7}},{"id":"67227e38-4723-4eff-8413-a93542bed73d","block_type":"box","text":"Annual","page_number":21,"box":{"x":708,"y":539,"width":39,"height":7}},{"id":"0fb3125e-e726-470d-af5e-ec94c9fb8685","block_type":"box","text":"Benefits upon","page_number":21,"box":{"x":688,"y":548,"width":79,"height":9}},{"id":"07c6ebad-b975-4b2b-b2d4-19138099e66e","block_type":"box","text":"Retirement","page_number":21,"box":{"x":696,"y":559,"width":64,"height":7}},{"id":"5844dfdb-8380-40d1-8a4b-c05676a24a42","block_type":"box","text":"Aggregate","page_number":21,"box":{"x":823,"y":508,"width":61,"height":9}},{"id":"812f2775-7a86-49bb-960a-ad5ace6551f3","block_type":"box","text":"Compensation","page_number":21,"box":{"x":812,"y":518,"width":83,"height":9}},{"id":"abcecfbf-fbc6-4147-a485-7285ea1b8662","block_type":"box","text":"from the Fund","page_number":21,"box":{"x":813,"y":528,"width":80,"height":7}},{"id":"2559bd23-f17d-4d52-8cac-1f332358613e","block_type":"box","text":"and Other","page_number":21,"box":{"x":825,"y":538,"width":57,"height":8}},{"id":"12cf6b89-5a2a-40ff-8db2-8e735c7bc18b","block_type":"box","text":"BlackRock-Advised","page_number":21,"box":{"x":798,"y":549,"width":111,"height":7}},{"id":"44e9e748-df9b-4ae2-9dfd-10f70e0fd553","block_type":"box","text":"Funds","page_number":21,"box":{"x":835,"y":559,"width":33,"height":7}},{"id":"8693b89b-8901-48ec-b2e7-19cbf77ff710","block_type":"box","text":"1","page_number":21,"box":{"x":869,"y":559,"width":4,"height":3}},{"id":"74090edc-e50f-4e60-a880-08e115489ed8","block_type":"box","text":"Independent Trustees","page_number":21,"box":{"x":70,"y":577,"width":154,"height":10}},{"id":"1010e891-61ce-45c3-ab59-c33a3c035039","block_type":"box","text":"Christopher J. Ailman","page_number":21,"box":{"x":79,"y":592,"width":149,"height":10}},{"id":"3307d7d0-37b1-4947-a76c-852cd558b8c3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":21,"box":{"x":232,"y":591,"width":411,"height":11}},{"id":"ef74bda4-f4b9-4bf9-a787-165396688a7c","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":711,"y":591,"width":179,"height":11}},{"id":"21e920be-ea81-4cbd-946a-49ceff9c91eb","block_type":"box","text":"Susan J. Carter","page_number":21,"box":{"x":79,"y":607,"width":110,"height":9}},{"id":"f11b7574-b2ef-4e15-964a-175de68fbdb7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":21,"box":{"x":192,"y":606,"width":451,"height":11}},{"id":"373ab61c-746c-4f0a-aa79-9817e5aceb8e","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":711,"y":606,"width":179,"height":11}},{"id":"738682ac-f028-4acb-98d2-3b290c6feab7","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":21,"box":{"x":79,"y":621,"width":564,"height":11}},{"id":"661c3e35-4a11-4ef5-a023-daa9c41b820f","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":711,"y":621,"width":179,"height":11}},{"id":"59df3ba1-be97-4b5d-9e01-80df99531488","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,170","page_number":21,"box":{"x":79,"y":636,"width":564,"height":12}},{"id":"a7c3dd31-69d8-45a0-beb5-8ae0c6c41ff8","block_type":"box","text":"None $467,500","page_number":21,"box":{"x":711,"y":636,"width":179,"height":11}},{"id":"87ca68c6-9114-4c41-95cc-9ebd1fc927e4","block_type":"box","text":"Jeffrey Jarczyk","page_number":21,"box":{"x":78,"y":652,"width":103,"height":11}},{"id":"3aed55d6-bfb3-4d5d-960f-9e5179e8f053","block_type":"box","text":"2","page_number":21,"box":{"x":181,"y":652,"width":4,"height":5}},{"id":"9011e5ff-7733-4086-9535-753a811b86dc","block_type":"box","text":"............................................","page_number":21,"box":{"x":192,"y":659,"width":352,"height":2}},{"id":"d785814e-10a2-4349-9c73-b57ae62fcad4","block_type":"box","text":"$968 None None","page_number":21,"box":{"x":598,"y":651,"width":273,"height":11}},{"id":"bfa4d191-f23d-4bc7-a7af-8b9f1916ec86","block_type":"box","text":"Henry R. Keizer","page_number":21,"box":{"x":79,"y":667,"width":109,"height":11}},{"id":"f8befff8-9971-4d36-ad7e-8fe5e2e2447f","block_type":"box","text":"3","page_number":21,"box":{"x":189,"y":667,"width":4,"height":5}},{"id":"384f57e7-55b2-480c-aa79-225aa104f7e1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,556","page_number":21,"box":{"x":200,"y":666,"width":443,"height":11}},{"id":"46ef51ad-d24a-4539-99d0-5f3e9ec0f7ba","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":711,"y":666,"width":179,"height":11}},{"id":"858f7d1f-5e15-491b-a729-1a529aae8e7f","block_type":"box","text":"Cynthia A. Montgomery","page_number":21,"box":{"x":79,"y":682,"width":164,"height":11}},{"id":"0f039483-40e2-44ab-939d-2ee6f54d2497","block_type":"box","text":"4","page_number":21,"box":{"x":244,"y":683,"width":4,"height":4}},{"id":"9f002f42-963e-481e-a394-78ea1d92e211","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,352","page_number":21,"box":{"x":257,"y":681,"width":385,"height":12}},{"id":"f006a571-812c-48ee-8330-1383f514d788","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":711,"y":681,"width":179,"height":12}},{"id":"af31bda2-614e-4bb6-bf1c-10598b6d45c3","block_type":"box","text":"Donald C. Opatrny","page_number":21,"box":{"x":79,"y":697,"width":129,"height":11}},{"id":"8c938b05-908a-4e5f-89da-2425ef317959","block_type":"box","text":"5","page_number":21,"box":{"x":208,"y":698,"width":4,"height":4}},{"id":"1a551f8a-2213-4717-9700-cf1ceb6c6568","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,352","page_number":21,"box":{"x":216,"y":697,"width":426,"height":11}},{"id":"0e7466b8-e92f-462d-9f17-35e0e964e7fa","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":711,"y":697,"width":179,"height":11}},{"id":"acef5313-ed46-495f-ab85-0fcebd734898","block_type":"box","text":"Lori Richards","page_number":21,"box":{"x":79,"y":713,"width":91,"height":8}},{"id":"d2ff7281-a8d0-4c70-85e2-6d2e57921895","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":21,"box":{"x":183,"y":712,"width":460,"height":11}},{"id":"3c8e3708-8dda-4e2e-aaa1-ddddd45672b4","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":711,"y":712,"width":179,"height":11}},{"id":"819975c6-1082-42ee-ad93-b6a4daefa7f4","block_type":"box","text":"Mark Stalnecker","page_number":21,"box":{"x":79,"y":728,"width":115,"height":8}},{"id":"7e61e836-7c1f-432f-923f-f52a2b6c2339","block_type":"box","text":"6","page_number":21,"box":{"x":194,"y":728,"width":5,"height":4}},{"id":"6791a2f5-2981-4608-8144-4508bfda3b66","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,318","page_number":21,"box":{"x":208,"y":727,"width":435,"height":11}},{"id":"48f413ff-404c-46ef-a112-e2a7f19dedfd","block_type":"box","text":"None $595,000","page_number":21,"box":{"x":711,"y":727,"width":179,"height":11}},{"id":"4986c2d6-ed31-4275-aa91-1a8fe44aa9e3","block_type":"box","text":"Marc D. Stern","page_number":21,"box":{"x":79,"y":743,"width":97,"height":9}},{"id":"b2ad3753-24b3-40af-8700-20134c2985e8","block_type":"box","text":"2","page_number":21,"box":{"x":178,"y":743,"width":4,"height":4}},{"id":"ce10b7c8-55bf-48bd-b04a-7052a4370324","block_type":"box","text":"............................................","page_number":21,"box":{"x":192,"y":750,"width":352,"height":1}},{"id":"2a2a1b0f-c28a-4689-8186-72bd7a20cff0","block_type":"box","text":"$968 None None","page_number":21,"box":{"x":598,"y":742,"width":273,"height":10}},{"id":"16af60bd-d14c-406e-aa29-969d49accc21","block_type":"box","text":"Kenneth L. Urish","page_number":21,"box":{"x":79,"y":758,"width":117,"height":9}},{"id":"1aa7290a-9fea-44c3-b2cc-4c13c0b8f7a6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":21,"box":{"x":200,"y":757,"width":443,"height":11}},{"id":"45e3c0ba-0fe0-43a9-a19c-f23c99f9cc3b","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":711,"y":757,"width":179,"height":11}},{"id":"291b9028-ff42-4e38-944c-d93070a13d4e","block_type":"box","text":"Claire A. Walton","page_number":21,"box":{"x":79,"y":773,"width":111,"height":9}},{"id":"244d38f7-97cc-4a13-b674-2d74a5b3749b","block_type":"box","text":"7","page_number":21,"box":{"x":192,"y":773,"width":3,"height":5}},{"id":"19a085ab-4c54-4035-955c-b964f8e7f1b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,352","page_number":21,"box":{"x":200,"y":772,"width":442,"height":11}},{"id":"36a016e8-65fb-4791-b06a-2d629a073cbe","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":711,"y":772,"width":179,"height":11}},{"id":"36ebb94b-4f26-4554-9b92-001e3e0a17c7","block_type":"box","text":"Interested Trustees","page_number":21,"box":{"x":70,"y":788,"width":138,"height":9}},{"id":"43b13413-c1be-4a7c-a8f4-abef24de0f7b","block_type":"box","text":"Robert Fairbairn","page_number":21,"box":{"x":79,"y":803,"width":113,"height":9}},{"id":"e07d2731-3c2d-4825-bc89-2cc5db2dca7f","block_type":"box","text":"...........................................","page_number":21,"box":{"x":200,"y":811,"width":344,"height":1}},{"id":"a7f75dba-bf7e-4311-93a4-f9ada1b0718f","block_type":"box","text":"None None None","page_number":21,"box":{"x":599,"y":803,"width":272,"height":9}},{"id":"fb4130a4-2e78-43f3-bbab-c5c28eb4694d","block_type":"box","text":"John M. Perlowski","page_number":21,"box":{"x":78,"y":818,"width":127,"height":9}},{"id":"c58d3357-7925-405e-b310-9a8e6b3487fb","block_type":"box","text":"..........................................","page_number":21,"box":{"x":208,"y":826,"width":336,"height":1}},{"id":"eb780761-919b-43d1-9fb8-9456b4a7c6bc","block_type":"box","text":"None None None","page_number":21,"box":{"x":599,"y":818,"width":272,"height":9}},{"id":"21b8e35e-613c-4344-9b4a-9781c6ff7b9e","block_type":"box","text":"1","page_number":21,"box":{"x":69,"y":843,"width":3,"height":3}},{"id":"40ec6bdf-90b6-41b2-ba90-c935bf72ca52","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":21,"box":{"x":94,"y":843,"width":786,"height":9}},{"id":"a96a433a-c2c9-4fd6-917e-51c7c70e15d5","block_type":"box","text":"page I-13.","page_number":21,"box":{"x":94,"y":853,"width":55,"height":9}},{"id":"645cf74c-db92-4e47-9e03-8d4cb37dc6d8","block_type":"box","text":"2","page_number":21,"box":{"x":69,"y":865,"width":3,"height":4}},{"id":"e23be3ae-bd94-4bbe-a411-7577eba59d6a","block_type":"box","text":"Compensation includes $968 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":21,"box":{"x":93,"y":865,"width":724,"height":9}},{"id":"87a81ef9-04f4-45d0-87ce-15e4741b3e71","block_type":"box","text":"3","page_number":21,"box":{"x":69,"y":878,"width":3,"height":4}},{"id":"c39160ef-4cbe-4c90-b86e-acf27cf82622","block_type":"box","text":"Chair of the Audit Committee.","page_number":21,"box":{"x":93,"y":878,"width":168,"height":7}},{"id":"6b4c95e1-044f-44b5-bb38-a0492bada9d2","block_type":"box","text":"4","page_number":21,"box":{"x":68,"y":891,"width":4,"height":3}},{"id":"e84f30c2-6454-437c-99c8-2a56c00bcdca","block_type":"box","text":"Chair of the Governance Committee.","page_number":21,"box":{"x":93,"y":890,"width":206,"height":8}},{"id":"d8ae9d54-90d5-436d-ab38-71de60b683bd","block_type":"box","text":"5","page_number":21,"box":{"x":69,"y":903,"width":3,"height":4}},{"id":"025d22f2-003b-436e-96f6-b4ae58abf6d6","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":21,"box":{"x":93,"y":903,"width":269,"height":9}},{"id":"32f589c4-be04-48b4-9ced-a81a743b901c","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"e0845c81-01ff-4fab-a58a-6a222cc0de9b","block_type":"box","text":"NM1026U-5978945-21/232","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8b364c0b-d1c4-445f-9062-0836c6c797ef","block_type":"box","text":"6","page_number":22,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"bba5955e-6e8c-416d-890d-29a1b2259b64","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":22,"box":{"x":93,"y":45,"width":352,"height":9}},{"id":"7c2c51a9-3567-4cad-9375-7cd6c72b5459","block_type":"box","text":"7","page_number":22,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"258cf65f-53ff-483e-90ae-b648288f85cf","block_type":"box","text":"Chair of the Compliance Committee.","page_number":22,"box":{"x":93,"y":58,"width":205,"height":9}},{"id":"956ba501-a173-418e-89a6-d80d128fbaa8","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":22,"box":{"x":69,"y":86,"width":432,"height":11}},{"id":"b4b0ac10-7b32-4ef6-9cc4-48c7379402fe","block_type":"box","text":"Management Agreement","page_number":22,"box":{"x":69,"y":117,"width":180,"height":11}},{"id":"9320f6a7-cba5-45a3-b6b1-d248180a4a97","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock (the","page_number":22,"box":{"x":101,"y":139,"width":751,"height":11}},{"id":"1694bc04-0705-437e-a3ea-86ae13ee3a3a","block_type":"box","text":"“Management Agreement”) pursuant to which BlackRock is entitled to receive fees for the services it provides.","page_number":22,"box":{"x":70,"y":154,"width":788,"height":12}},{"id":"0bba011a-4183-43a4-8132-56222dece5b8","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":22,"box":{"x":102,"y":177,"width":762,"height":11}},{"id":"55a7e937-95ec-495e-9e0e-171c4ac25297","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":22,"box":{"x":69,"y":192,"width":799,"height":11}},{"id":"879e61ec-7a3d-465f-a097-a868cf278a43","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":22,"box":{"x":68,"y":207,"width":726,"height":11}},{"id":"772e6d68-cc9a-4138-8735-835344b293ce","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":22,"box":{"x":69,"y":222,"width":797,"height":12}},{"id":"a86b4e1a-0b2e-4828-a0c8-66375985726b","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":22,"box":{"x":69,"y":237,"width":789,"height":12}},{"id":"53dcb2db-baff-4068-96d8-bb29b6fa5635","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":22,"box":{"x":70,"y":252,"width":810,"height":12}},{"id":"d538840a-9901-411a-9559-715b323d30e9","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":22,"box":{"x":69,"y":268,"width":827,"height":11}},{"id":"5f011b73-6864-4d23-8db2-90839341d003","block_type":"box","text":"Fund.","page_number":22,"box":{"x":70,"y":283,"width":36,"height":9}},{"id":"17dfef92-5c0d-454d-b568-681ab54c1456","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":22,"box":{"x":102,"y":305,"width":778,"height":12}},{"id":"56b737ee-7490-4196-97d0-1a6c330c2e63","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest","page_number":22,"box":{"x":70,"y":321,"width":824,"height":11}},{"id":"30814183-57d7-4efc-baad-4ca72e6f70ac","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.75% (for Investor A Shares),","page_number":22,"box":{"x":70,"y":336,"width":795,"height":11}},{"id":"c48fdc0a-0468-49b2-a484-ea2e69f981be","block_type":"box","text":"1.50% (for Investor C Shares), 0.50% (for Institutional Shares), 1.00% (for Class R Shares), 0.45% (for Class K","page_number":22,"box":{"x":70,"y":351,"width":791,"height":11}},{"id":"48b792a1-2f16-4d0f-8fee-a07b83da5df8","block_type":"box","text":"Shares) and 0.75% (for Service Shares) of average daily net assets through June 30, 2028. The contractual","page_number":22,"box":{"x":69,"y":366,"width":769,"height":11}},{"id":"80ee487e-0208-4ec3-bb4c-3bbf2762d410","block_type":"box","text":"agreement may be terminated upon 90 days’ notice by a majority of the non-interested directors of the corporation or","page_number":22,"box":{"x":69,"y":381,"width":836,"height":11}},{"id":"2fb46d3b-b55c-4016-891d-d39f095b8ed6","block_type":"box","text":"by a vote of a majority of the outstanding voting securities of the Fund.","page_number":22,"box":{"x":69,"y":396,"width":502,"height":11}},{"id":"29a15413-d0cf-498d-94a0-a44faf25cbe6","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":22,"box":{"x":102,"y":419,"width":784,"height":11}},{"id":"2f240eae-84f8-4dab-9517-c2c2fd32648d","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":22,"box":{"x":70,"y":434,"width":838,"height":11}},{"id":"e1a9ffb8-3ce2-4662-a34f-de7e0c43f788","block_type":"box","text":"perform investment advisory services with respect to the Fund. In addition, BlackRock may delegate certain of its","page_number":22,"box":{"x":70,"y":449,"width":810,"height":11}},{"id":"a2035af7-0b3c-4776-ab0c-679727872015","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":22,"box":{"x":70,"y":464,"width":779,"height":11}},{"id":"0eec4ca5-411c-402a-a7ae-69ba41449021","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":22,"box":{"x":70,"y":480,"width":827,"height":11}},{"id":"f3ed9d72-e158-4406-bdc8-879b86bb6a9b","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":22,"box":{"x":69,"y":495,"width":486,"height":11}},{"id":"3d21bd37-fafc-49a0-8337-271e1380fd8d","block_type":"box","text":"The table below sets forth information about the total management fees paid by the Trust to BlackRock, on","page_number":22,"box":{"x":101,"y":517,"width":765,"height":11}},{"id":"967cbe2b-4bd9-49bc-bafa-e909411e8967","block_type":"box","text":"behalf of the Fund, and/or the amounts waived and reimbursed, for the periods shown.","page_number":22,"box":{"x":69,"y":532,"width":620,"height":11}},{"id":"e8f18f36-51b8-4f03-889e-1bc4b0bff8b1","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":586,"y":561,"width":55,"height":7}},{"id":"faca476f-8c24-4b54-abef-df5dbb5d15e0","block_type":"box","text":"to BlackRock","page_number":22,"box":{"x":574,"y":571,"width":79,"height":7}},{"id":"6f1169ec-3401-4a47-9171-2ac2ca0c664e","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":700,"y":561,"width":72,"height":7}},{"id":"e81a266d-de72-4df3-b154-812a3c33a5f9","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":696,"y":571,"width":80,"height":8}},{"id":"4afeafb1-1bed-42d3-b828-2aebb8b828be","block_type":"box","text":"Fees Reimbursed","page_number":22,"box":{"x":810,"y":561,"width":99,"height":7}},{"id":"d80ef883-a1aa-45b4-a5f5-def82666c217","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":820,"y":571,"width":80,"height":8}},{"id":"2f211dfe-4466-446e-92ca-b76feeb93503","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,502,808 $2,037,464 $2,869,134","page_number":22,"box":{"x":70,"y":588,"width":833,"height":11}},{"id":"ee156681-e64b-406e-8ddc-ac4b040271f5","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,669,011 $1,273,443 $1,301,485","page_number":22,"box":{"x":70,"y":603,"width":833,"height":12}},{"id":"4567bc38-70ff-4ecc-980e-cf9082cf62ad","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,321,773 $1,217,740 $1,079,861","page_number":22,"box":{"x":70,"y":618,"width":833,"height":12}},{"id":"67d41eb0-09a2-40b4-a0f4-71bdc81f8483","block_type":"box","text":"Administration Agreement","page_number":22,"box":{"x":68,"y":650,"width":191,"height":11}},{"id":"e26725ba-2411-47c2-8eff-73c79bc2073d","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":22,"box":{"x":102,"y":673,"width":711,"height":11}},{"id":"f2b7d77c-4f43-4d26-9841-802b81daeac1","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":22,"box":{"x":69,"y":688,"width":838,"height":11}},{"id":"3267627e-c343-4571-a2c4-dcb427c350da","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":22,"box":{"x":68,"y":703,"width":830,"height":11}},{"id":"06f7fdb6-8f3b-4960-a7af-e889deb94cde","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":22,"box":{"x":70,"y":718,"width":813,"height":11}},{"id":"908b0b11-8e06-43a2-affa-eb9c338cd7ae","block_type":"box","text":"returns; prepare certain reports required by regulatory authorities; calculate various contractual expenses; determine","page_number":22,"box":{"x":69,"y":733,"width":837,"height":11}},{"id":"0e8b3a3c-7455-4dbe-8ca2-8d4804cca592","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":22,"box":{"x":68,"y":748,"width":836,"height":12}},{"id":"c0735768-293c-429c-a2bb-539ec8ad2f45","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":22,"box":{"x":68,"y":763,"width":785,"height":12}},{"id":"6e8bb324-625b-4d81-ae00-7e519283370a","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":22,"box":{"x":69,"y":778,"width":765,"height":12}},{"id":"b2682951-46ad-4bc3-b1ed-dc0759723a8f","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":22,"box":{"x":70,"y":794,"width":819,"height":11}},{"id":"6634bbe7-da23-4a48-91a7-7edfb62ef932","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":22,"box":{"x":69,"y":809,"width":818,"height":11}},{"id":"f714bdca-702f-4c88-8633-9bcc51948230","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":22,"box":{"x":68,"y":824,"width":840,"height":11}},{"id":"47a0f714-a444-441a-aa4d-662b048c5dd4","block_type":"box","text":"reimburse the Fund for expenses.","page_number":22,"box":{"x":69,"y":839,"width":238,"height":11}},{"id":"39ba5be5-8223-4a1e-aca5-3982eb1b60aa","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":22,"box":{"x":102,"y":862,"width":802,"height":11}},{"id":"a3dd2fa3-41c9-4bd4-b307-49133bdcccc4","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":22,"box":{"x":69,"y":876,"width":830,"height":12}},{"id":"6457ef07-f44f-4953-b87c-686ce0f6d131","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":22,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"09905c2b-50d4-467b-a324-9c3dead93428","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":22,"box":{"x":69,"y":906,"width":785,"height":12}},{"id":"0f4e4c8c-926c-42d3-b941-f716312128fa","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c5f111c7-f789-4511-afac-a1b643c612f5","block_type":"box","text":"NM1026U-5978945-22/232","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bfb2b63c-dbc7-4073-9931-de0a99dcb5ba","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":23,"box":{"x":69,"y":44,"width":816,"height":12}},{"id":"e962ba64-f979-492d-b544-5ed3f11278a2","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":23,"box":{"x":69,"y":59,"width":805,"height":12}},{"id":"a044f478-21b9-4e14-a028-bb596465887b","block_type":"box","text":"shares of the Fund.","page_number":23,"box":{"x":69,"y":75,"width":137,"height":9}},{"id":"f5bbcf2a-772d-4ce8-9bcf-e21c052ee0b9","block_type":"box","text":"The table below sets forth information about the administration fees paid by the Trust on behalf of the Fund, to","page_number":23,"box":{"x":101,"y":98,"width":793,"height":11}},{"id":"fe254813-89aa-413f-9f10-9cd4d3bd910a","block_type":"box","text":"the Administrator, and the amounts waived, for the periods 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.","page_number":23,"box":{"x":70,"y":194,"width":269,"height":11}},{"id":"85c3851b-01a5-4cdc-9604-a660e435174a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":23,"box":{"x":345,"y":193,"width":382,"height":11}},{"id":"bac5e4bf-0669-4378-b0ae-24806db3b418","block_type":"box","text":"575,696 $ 541,125","page_number":23,"box":{"x":729,"y":193,"width":180,"height":11}},{"id":"63f25768-9e16-48b3-998a-c59c881434eb","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . .","page_number":23,"box":{"x":70,"y":209,"width":269,"height":11}},{"id":"37311cd1-7c84-42aa-a709-728354d2b8c7","block_type":"box","text":"......................................... $","page_number":23,"box":{"x":345,"y":208,"width":368,"height":11}},{"id":"103d2d69-fdf3-47a2-97de-5fb87ecc771d","block_type":"box","text":"861,725 $ 286,567","page_number":23,"box":{"x":729,"y":208,"width":179,"height":12}},{"id":"79e22873-2595-40ad-b4bc-1e20fda5187e","block_type":"box","text":"The Trust and its service providers may engage third party plan administrators who provide trustee,","page_number":23,"box":{"x":101,"y":233,"width":708,"height":11}},{"id":"0f814441-33ab-4e32-b8d4-64b74be1a467","block_type":"box","text":"administrative and recordkeeping services for certain employee benefit, profit-sharing and retirement plans as agents","page_number":23,"box":{"x":69,"y":248,"width":838,"height":11}},{"id":"4545c59e-107a-4720-8465-79a97427243e","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":23,"box":{"x":68,"y":263,"width":800,"height":12}},{"id":"8b3664ab-5406-47eb-bd7e-66b88d0cdcc0","block_type":"box","text":"shares of the 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Pooled","page_number":23,"box":{"x":720,"y":659,"width":75,"height":7}},{"id":"050d1a58-a654-4fbc-a40e-2b25bfb6ca9c","block_type":"box","text":"Investment","page_number":23,"box":{"x":726,"y":669,"width":64,"height":7}},{"id":"97c91cd2-cde2-43d5-bb76-015bc71941a5","block_type":"box","text":"Vehicles","page_number":23,"box":{"x":734,"y":679,"width":48,"height":7}},{"id":"19e8abef-6215-4044-b0bb-dcccdc57ec52","block_type":"box","text":"Other","page_number":23,"box":{"x":843,"y":669,"width":32,"height":7}},{"id":"185899e2-de98-4cf6-99bd-6f7e69ea4738","block_type":"box","text":"Accounts","page_number":23,"box":{"x":832,"y":679,"width":54,"height":7}},{"id":"6f1f7515-d0f2-4336-bcd3-5fe2c91ceec8","block_type":"box","text":"Kevin Franklin 10 300 33 0 9 6","page_number":23,"box":{"x":74,"y":693,"width":788,"height":7}},{"id":"1c0c77e4-2f33-4f8c-ae76-baf768326b99","block_type":"box","text":"$15.73 Billion $23.57 Billion $54.50 Billion $0 $6.00 Billion $13.55 Billion","page_number":23,"box":{"x":329,"y":705,"width":570,"height":8}},{"id":"ede4a846-1f8d-4115-8c03-2413207a30a3","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":23,"box":{"x":74,"y":718,"width":788,"height":7}},{"id":"a3d16d7b-1e23-46b8-930a-98fbf0a1df82","block_type":"box","text":"$36.26 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":23,"box":{"x":329,"y":730,"width":570,"height":8}},{"id":"4d5bcb26-f221-455e-9d0a-b233a5f1e7c0","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":23,"box":{"x":74,"y":743,"width":788,"height":7}},{"id":"a2641110-e5f9-4f61-ac44-3f91b4e6e45e","block_type":"box","text":"$47.37 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":23,"box":{"x":329,"y":755,"width":566,"height":9}},{"id":"44a2d910-b78e-45e6-979e-087528013175","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":23,"box":{"x":69,"y":790,"width":304,"height":11}},{"id":"a43d66e0-4dbd-43d9-ab40-1fa2c6b1d62e","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":23,"box":{"x":101,"y":812,"width":656,"height":12}},{"id":"163e1937-25a4-42c3-86b1-966b767bd89e","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":23,"box":{"x":102,"y":835,"width":774,"height":11}},{"id":"871ca5df-99bd-4e91-9451-d7412ac5314a","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":23,"box":{"x":70,"y":850,"width":837,"height":12}},{"id":"ca005ca1-0d0d-47b8-abf0-09672ad441c2","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":23,"box":{"x":69,"y":865,"width":823,"height":12}},{"id":"6f7c7377-1145-4c69-b4e1-561c96c12c52","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":23,"box":{"x":69,"y":881,"width":799,"height":11}},{"id":"9094aa8b-6d73-4fd4-84c1-5c7e663e7953","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":23,"box":{"x":70,"y":896,"width":670,"height":11}},{"id":"913057d3-7eda-4677-ba02-da24981ee678","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e3747e26-aa78-40b6-932b-7184a2f2519b","block_type":"box","text":"NM1026U-5978945-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"230dc151-af6a-46ad-aba5-db1e63774bff","block_type":"box","text":"Base Compensation.","page_number":24,"box":{"x":102,"y":45,"width":148,"height":11}},{"id":"7ec0f050-8628-498b-8b67-f910c1f8b197","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":24,"box":{"x":257,"y":45,"width":640,"height":11}},{"id":"6e72916a-cbb6-4f04-990b-a1e5e1da2cc3","block_type":"box","text":"firm.","page_number":24,"box":{"x":68,"y":60,"width":32,"height":9}},{"id":"bb035bf5-9619-445b-b7c5-76142d0e1a2e","block_type":"box","text":"Discretionary Incentive Compensation","page_number":24,"box":{"x":69,"y":90,"width":277,"height":11}},{"id":"103746c8-1350-4cf5-9d9e-1dd558595005","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":24,"box":{"x":102,"y":113,"width":792,"height":11}},{"id":"6dc0e472-1af9-4f50-bfa0-17e73180ef1d","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":24,"box":{"x":68,"y":128,"width":800,"height":11}},{"id":"ce61cb40-2bc9-4a32-bf49-466f30188569","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":24,"box":{"x":69,"y":143,"width":777,"height":11}},{"id":"06cf4c8c-f6dd-4392-b5d6-c99e9ca169db","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":24,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"e1ac1527-9ae6-4f51-909a-ca1ba1cad8ff","block_type":"box","text":"portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":24,"box":{"x":70,"y":173,"width":741,"height":11}},{"id":"4bfc7903-c87c-4398-9ae0-b54ecb77d823","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds and","page_number":24,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"739f118e-3b0f-4326-a2f2-595c4e91f9fd","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally","page_number":24,"box":{"x":69,"y":203,"width":806,"height":12}},{"id":"c1d4fca7-4f10-4dfa-a5ea-8d7a28469b00","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The performance of Messrs. Savi,","page_number":24,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"831b4122-a8c4-4336-90c0-0f4de9a86ebc","block_type":"box","text":"Franklin and Mathieson is not measured against a specific benchmark.","page_number":24,"box":{"x":70,"y":234,"width":503,"height":11}},{"id":"59aba890-6bd2-4856-898d-8b48559bf50f","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":24,"box":{"x":102,"y":256,"width":389,"height":11}},{"id":"a499a2d2-9923-4504-afc5-6d7cbf0aacb5","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":24,"box":{"x":499,"y":257,"width":383,"height":10}},{"id":"c97379a0-169b-4fab-923c-6636c1bd51c1","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":24,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"3fa20a36-d02e-49e2-be1f-77b909ad551d","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":24,"box":{"x":68,"y":286,"width":522,"height":12}},{"id":"1bea9114-0d84-47a1-915e-fa0ecd9ec8cb","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":24,"box":{"x":102,"y":309,"width":760,"height":11}},{"id":"9036d87a-9a99-4c51-9a76-acdbd1a82e25","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":24,"box":{"x":69,"y":324,"width":795,"height":12}},{"id":"b434b1d1-a985-4363-b8c6-3f6cc4f5bf15","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":24,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"b5dbe3ab-0861-4ff2-9638-91d4808f1c85","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":24,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"6fae415d-3450-4b43-8b93-854d5456c364","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":24,"box":{"x":68,"y":370,"width":839,"height":11}},{"id":"7c03bb74-0c91-42ef-a222-80d966be1796","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":24,"box":{"x":69,"y":385,"width":802,"height":11}},{"id":"ddc926c1-3f9c-4a32-a0ae-0ce7dbd8f753","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":24,"box":{"x":70,"y":400,"width":820,"height":11}},{"id":"05e2da32-45ed-420d-bb5a-11f57ef3f56b","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":24,"box":{"x":70,"y":415,"width":801,"height":11}},{"id":"2cc98a9c-3e72-43dc-8589-bf29e4529b42","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":24,"box":{"x":70,"y":430,"width":831,"height":11}},{"id":"f9090a1d-528f-4212-88e0-d52c492d30d0","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":24,"box":{"x":69,"y":445,"width":479,"height":12}},{"id":"318ab9c4-56b0-49b1-b0ab-7da395e9b2fc","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":24,"box":{"x":102,"y":468,"width":785,"height":11}},{"id":"60c01fb7-4519-4543-9967-a7048334ecc8","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":24,"box":{"x":68,"y":483,"width":836,"height":11}},{"id":"55ec8c40-a52e-4a40-8ab0-a440c6d5b3bb","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":24,"box":{"x":68,"y":498,"width":821,"height":11}},{"id":"4dd99f61-0bdf-4d82-850d-1f6920006253","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":24,"box":{"x":69,"y":513,"width":829,"height":11}},{"id":"ef036d23-25d3-4912-b64a-b98bbde9c68b","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":24,"box":{"x":70,"y":528,"width":835,"height":12}},{"id":"f152dc2c-d340-40ee-b7e4-783c4c922170","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":24,"box":{"x":69,"y":543,"width":414,"height":12}},{"id":"abf6b1c8-3d0f-4819-8670-999893e00ab4","block_type":"box","text":"Other Compensation Benefits.","page_number":24,"box":{"x":101,"y":566,"width":218,"height":11}},{"id":"77d87dbb-9de4-4f3e-a193-d909414d504d","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":24,"box":{"x":327,"y":566,"width":552,"height":11}},{"id":"e44cd0df-78dd-4aab-a878-c1402ef5913b","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":24,"box":{"x":69,"y":581,"width":582,"height":12}},{"id":"613af745-5ac9-4025-8bc1-35b8c919cd2d","block_type":"box","text":"Incentive Savings Plans","page_number":24,"box":{"x":102,"y":604,"width":167,"height":11}},{"id":"a1794828-bde6-4eb4-a472-2db29195a869","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":24,"box":{"x":274,"y":604,"width":614,"height":11}},{"id":"7f17dbbd-e41b-4b44-9cf7-92283333e88f","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":24,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"ce511643-4aaa-469a-a731-88dac7569886","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":24,"box":{"x":70,"y":634,"width":785,"height":11}},{"id":"889c9b29-1d50-485a-b375-2a78c556e4e3","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":24,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"33423207-f2a1-4f81-984e-9828bdefdd83","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":24,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"0551eb18-3ca0-4f27-907a-f2d8861c1795","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":24,"box":{"x":69,"y":679,"width":831,"height":12}},{"id":"a8fc1844-441e-4fff-a891-ba8b935c2fab","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":24,"box":{"x":69,"y":695,"width":798,"height":11}},{"id":"6f3b99cb-5835-4209-88bf-4ebf0be7c608","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":24,"box":{"x":70,"y":710,"width":809,"height":11}},{"id":"25a34e13-990d-4f97-9fc3-2799e9e6bee8","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":24,"box":{"x":68,"y":725,"width":793,"height":11}},{"id":"65574429-fca3-46d5-a416-79ceba79f281","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":24,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"e032f6d7-b96a-4681-9c90-097b9ff16aaa","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":24,"box":{"x":68,"y":755,"width":805,"height":11}},{"id":"1a2c6101-a457-44cb-8f25-f63e61122809","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":24,"box":{"x":69,"y":770,"width":808,"height":12}},{"id":"9461eb10-a59c-41c7-b4c1-1f0132326bd7","block_type":"box","text":"participate in these plans.","page_number":24,"box":{"x":70,"y":786,"width":185,"height":10}},{"id":"51ea8ceb-c27a-461e-8ed4-f4a69cf25233","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"308c6b3f-110b-41d1-9702-162176440d6b","block_type":"box","text":"NM1026U-5978945-24/232","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"77732619-bdd4-4c51-9780-12636b6c67f2","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":25,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"61eda432-8218-440c-9aad-2d5410bc19d8","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":25,"box":{"x":101,"y":67,"width":731,"height":12}},{"id":"49e1bd9a-da0b-4bb2-8cb4-d04ccc302518","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":25,"box":{"x":69,"y":82,"width":519,"height":12}},{"id":"5d78fb19-0a62-40fe-96a5-93b41f82b04b","block_type":"box","text":"Portfolio Manager","page_number":25,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"678a973c-220b-4813-82b5-7aaf7dd234c2","block_type":"box","text":"Dollar Range of Equity","page_number":25,"box":{"x":758,"y":111,"width":129,"height":9}},{"id":"7f7a6205-e9a2-4fe9-8a91-6004da0fb108","block_type":"box","text":"Securities Beneficially Owned","page_number":25,"box":{"x":735,"y":121,"width":173,"height":9}},{"id":"6a634b62-7254-4f98-99e1-e563a4a48e9e","block_type":"box","text":"Raffaele Savi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":25,"box":{"x":70,"y":138,"width":770,"height":9}},{"id":"eb93cdc0-a436-46bc-9ec6-6f81fcbf932a","block_type":"box","text":"Kevin Franklin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":154,"width":634,"height":9}},{"id":"95e5513f-126e-477b-941c-4961ead39bd3","block_type":"box","text":"$500,001 - $1,000,000","page_number":25,"box":{"x":736,"y":153,"width":173,"height":11}},{"id":"8f5a9e90-3ea2-4e11-b098-372f104abb12","block_type":"box","text":"Richard Mathieson, CA","page_number":25,"box":{"x":70,"y":169,"width":161,"height":10}},{"id":"d3fab5ca-0e01-49ba-b944-06a2f8acb3d2","block_type":"box","text":"..........................................................","page_number":25,"box":{"x":238,"y":176,"width":466,"height":2}},{"id":"0a195478-f6da-44d4-a5df-2f1e2f487dfd","block_type":"box","text":"$100,001 - $500,000","page_number":25,"box":{"x":743,"y":168,"width":159,"height":11}},{"id":"d3cc4a30-01e3-4992-a9ef-36c98aab3e2b","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":25,"box":{"x":69,"y":200,"width":403,"height":12}},{"id":"adefb358-3513-499f-88e1-861398e45087","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":25,"box":{"x":102,"y":223,"width":727,"height":11}},{"id":"558c006d-18ff-474a-af3b-abd7766c2d2c","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":25,"box":{"x":70,"y":238,"width":814,"height":11}},{"id":"e50994f5-716d-4f48-bc8c-f40a0c344c10","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":25,"box":{"x":70,"y":253,"width":837,"height":11}},{"id":"e920adee-2705-415c-a5a2-63fa6155281c","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":25,"box":{"x":70,"y":268,"width":810,"height":12}},{"id":"7fdd13ab-5cd5-49fb-b877-27e441b0ddd9","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":25,"box":{"x":69,"y":283,"width":782,"height":12}},{"id":"7ad67d00-6575-4adb-bfed-852d79b0173b","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":25,"box":{"x":69,"y":299,"width":830,"height":11}},{"id":"7b81daa7-3705-4f60-ad8c-a134226b50ab","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":25,"box":{"x":69,"y":314,"width":828,"height":11}},{"id":"73e15702-649d-4446-8c08-1f8bbb866174","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":25,"box":{"x":68,"y":329,"width":834,"height":11}},{"id":"f530d461-53b0-45a1-bc10-c7117a773a59","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":25,"box":{"x":70,"y":344,"width":777,"height":11}},{"id":"20d4dc02-f89c-4435-931b-1d1b7725a73c","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":25,"box":{"x":70,"y":359,"width":821,"height":11}},{"id":"6c80bbbc-8406-4456-b585-4e7f512b0ec7","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":25,"box":{"x":69,"y":374,"width":819,"height":11}},{"id":"fda3c8dc-6e84-4fc8-8cda-132f9c4cc295","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":25,"box":{"x":69,"y":389,"width":832,"height":11}},{"id":"bc373c87-63e6-4f31-8e5a-bbe11933b26b","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":25,"box":{"x":68,"y":404,"width":804,"height":11}},{"id":"585bd881-627f-490f-8624-0f238b92df2e","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":25,"box":{"x":69,"y":419,"width":760,"height":12}},{"id":"5a77b137-9c44-4e8d-8dab-bbbc56d248e1","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":25,"box":{"x":69,"y":435,"width":834,"height":11}},{"id":"b9a366cc-7995-4538-aa53-cd152de067da","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":25,"box":{"x":69,"y":450,"width":836,"height":11}},{"id":"39a1593f-7009-48b3-a338-8fb1721fead1","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":25,"box":{"x":69,"y":465,"width":822,"height":11}},{"id":"45bf7aa6-7b73-4f2a-96e6-e2e17f5edd87","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":25,"box":{"x":70,"y":480,"width":835,"height":11}},{"id":"e686e744-acf1-490e-a310-701b21b96055","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Savi, Franklin and Mathieson","page_number":25,"box":{"x":69,"y":495,"width":817,"height":11}},{"id":"5e583e35-0df6-4431-a4d6-e63bbc83fd69","block_type":"box","text":"may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long","page_number":25,"box":{"x":69,"y":510,"width":834,"height":11}},{"id":"edc69c44-1705-4aa0-a251-51f3858353e5","block_type":"box","text":"only accounts, subject to incentive fees. Messrs. Savi, Franklin and Mathieson may therefore be entitled to receive a","page_number":25,"box":{"x":69,"y":525,"width":832,"height":11}},{"id":"ef812087-c3a1-40b7-b4d1-9d6299f0cefc","block_type":"box","text":"portion of any incentive fees earned on such accounts.","page_number":25,"box":{"x":70,"y":540,"width":390,"height":12}},{"id":"5aca800a-c182-4d5c-9d9a-7d82b8812556","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":25,"box":{"x":101,"y":563,"width":788,"height":11}},{"id":"163fbf2b-a389-4900-b4ea-f8291a38ce78","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":25,"box":{"x":70,"y":578,"width":839,"height":11}},{"id":"9d4c07f8-30db-4146-af17-dc0e43dca81b","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":25,"box":{"x":68,"y":593,"width":823,"height":12}},{"id":"e4d2c306-52b8-478a-89e6-967292c388a7","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":25,"box":{"x":68,"y":608,"width":812,"height":12}},{"id":"797c04c5-50ec-40f9-830b-5bbb89509fe3","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":25,"box":{"x":69,"y":623,"width":777,"height":12}},{"id":"249ed740-60db-41f6-a2ef-81640436f6da","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":25,"box":{"x":70,"y":639,"width":826,"height":11}},{"id":"802ff340-4459-484f-9a09-d81202bca416","block_type":"box","text":"Accounting Services","page_number":25,"box":{"x":68,"y":669,"width":150,"height":11}},{"id":"4a29c30c-1283-4fd0-912a-78b77cd6fa0a","block_type":"box","text":"The Bank of New York Mellon serves as the accounting services provider for the Fund. BNY MIS records","page_number":25,"box":{"x":101,"y":692,"width":740,"height":11}},{"id":"67f12ed4-f113-4afc-af4b-79912667c1dc","block_type":"box","text":"investment, capital share and income and expense activities; verifies and transmits trade tickets; maintains","page_number":25,"box":{"x":70,"y":707,"width":769,"height":11}},{"id":"1b31a108-2e14-4158-9035-9a705f627d8b","block_type":"box","text":"accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports","page_number":25,"box":{"x":69,"y":722,"width":823,"height":11}},{"id":"ec7aceff-dd55-4537-a751-d8d1069fc0dd","block_type":"box","text":"cash balances to BlackRock; prepares certain financial statements; calculates expenses, gains, losses and income;","page_number":25,"box":{"x":69,"y":737,"width":830,"height":11}},{"id":"13feb691-b050-4347-8740-e3a350ea39a7","block_type":"box","text":"controls disbursements; works with independent pricing sources; and computes and reports net asset value. In","page_number":25,"box":{"x":69,"y":752,"width":795,"height":11}},{"id":"6628fb50-58a1-4f17-b9ff-ab5a8d9a5be8","block_type":"box","text":"connection with its accounting services, BNY MIS also provides certain administration services.","page_number":25,"box":{"x":69,"y":767,"width":683,"height":11}},{"id":"0ea2951e-c8cb-4dae-bc56-fa6641067be8","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY MIS for accounting services for the periods shown:","page_number":25,"box":{"x":101,"y":790,"width":800,"height":11}},{"id":"c8499be5-b320-4e07-a5fe-1ccb63304733","block_type":"box","text":"Fees Paid to BNY MIS","page_number":25,"box":{"x":781,"y":818,"width":128,"height":7}},{"id":"cd6e9d83-1647-4cfa-91dc-9c936d20d268","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":25,"box":{"x":70,"y":836,"width":230,"height":11}},{"id":"aec06f30-9cd3-4eb3-8f35-c7379eb05cf4","block_type":"box","text":".......................................................","page_number":25,"box":{"x":308,"y":843,"width":442,"height":2}},{"id":"ca3e14d7-8778-469a-bd0a-03f8b3bce047","block_type":"box","text":"$395,813","page_number":25,"box":{"x":809,"y":835,"width":72,"height":11}},{"id":"a020f482-6353-4423-ab42-d619eb9a92c2","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":25,"box":{"x":70,"y":851,"width":230,"height":11}},{"id":"d5efc979-fc98-4de5-bae0-8ee2f7fb78b0","block_type":"box","text":".......................................................","page_number":25,"box":{"x":308,"y":858,"width":442,"height":2}},{"id":"f147d596-c2f5-4488-a528-6693b5b83267","block_type":"box","text":"$185,481","page_number":25,"box":{"x":809,"y":850,"width":72,"height":11}},{"id":"0eaf7d9b-b73f-43d4-9fee-eb926aa6369b","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":25,"box":{"x":70,"y":866,"width":230,"height":11}},{"id":"f12f6054-e291-4ac2-88f4-2ccdda953850","block_type":"box","text":".......................................................","page_number":25,"box":{"x":308,"y":874,"width":442,"height":1}},{"id":"0a63f6d7-19c8-40c1-baa1-f9ca84b0310f","block_type":"box","text":"$114,378","page_number":25,"box":{"x":809,"y":865,"width":72,"height":12}},{"id":"d3fed8d8-dab4-4826-a932-44f1055a8262","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"c46b4dc7-03e6-463a-bf33-d983bf3c2489","block_type":"box","text":"NM1026U-5978945-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e58829fe-84b1-4fdb-8834-4816c5e77311","block_type":"box","text":"Custodian","page_number":26,"box":{"x":69,"y":45,"width":72,"height":9}},{"id":"3203f878-a4b5-46d8-b4ef-4e8e7069eb08","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, NY 10286, also","page_number":26,"box":{"x":102,"y":67,"width":758,"height":11}},{"id":"e00f6e74-3cf9-41ad-9392-21a2ce7d2b6c","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":26,"box":{"x":69,"y":82,"width":810,"height":12}},{"id":"a56ea271-8ed6-48ed-9fb3-7abb9b8fa9f5","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":26,"box":{"x":69,"y":98,"width":815,"height":11}},{"id":"8c9e7e05-8b7c-4721-8848-0df5cbddcc7a","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":26,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"ae08b4b0-8ba7-4db1-8a8b-b2a38c8ea3e7","block_type":"box","text":"the assets of the Fund.","page_number":26,"box":{"x":68,"y":128,"width":165,"height":9}},{"id":"d18fae55-61d0-4fdf-97ce-1a78c302d2ee","block_type":"box","text":"Transfer Agent","page_number":26,"box":{"x":68,"y":158,"width":107,"height":11}},{"id":"5cd994ca-532f-48c5-99f7-42c6903db765","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":26,"box":{"x":102,"y":181,"width":764,"height":11}},{"id":"a79ad923-50b9-49ba-bdfa-7e4d5d1ca0a8","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":26,"box":{"x":68,"y":196,"width":792,"height":11}},{"id":"26951cf5-d10e-410f-95f5-d564f14c461b","block_type":"box","text":"Credit Agreement","page_number":26,"box":{"x":69,"y":226,"width":129,"height":11}},{"id":"0682a205-0486-4f4a-b222-1269bb742b4b","block_type":"box","text":"The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":26,"box":{"x":101,"y":249,"width":757,"height":11}},{"id":"e946fd1a-0b22-406c-9fe3-18d48ae6da62","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":26,"box":{"x":69,"y":263,"width":817,"height":12}},{"id":"e62a3e97-feda-4276-b7b1-112588b7bb00","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":26,"box":{"x":68,"y":279,"width":743,"height":11}},{"id":"b27a62ee-caa0-4f83-8d67-73a043f885e7","block_type":"box","text":"commitments designated for certain Participating Funds, the Participating Funds, including the Fund, can borrow up","page_number":26,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"aa674340-71f0-4fd5-a77e-c2a8a82778cf","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":26,"box":{"x":68,"y":309,"width":818,"height":11}},{"id":"b7b2a7a6-641f-4552-a4e1-e23e84558077","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":26,"box":{"x":70,"y":324,"width":761,"height":12}},{"id":"0865d504-8634-4bd7-830a-9ba414285964","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":26,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"47af5d4f-445f-4520-87ce-f5f1a5058b29","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":26,"box":{"x":68,"y":355,"width":825,"height":11}},{"id":"c3566256-274c-41f5-a078-f58c84c9fe45","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":26,"box":{"x":69,"y":370,"width":805,"height":11}},{"id":"4699abe7-0b70-41be-82cf-842260fed70b","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":26,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"45831bb0-d1c3-433f-9b16-b2a77377b406","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":26,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"9240b498-413f-49d1-b001-c84bf1b080e7","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":26,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"ecdbd4d0-8c11-4694-980b-7994ee3b58cc","block_type":"box","text":"charged interest at a variable rate.","page_number":26,"box":{"x":69,"y":430,"width":245,"height":11}},{"id":"3aba3016-f52b-4671-b28d-3ef8c46be308","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":26,"box":{"x":68,"y":460,"width":491,"height":12}},{"id":"49d7140a-a157-49e9-84da-9a4c1fad2b96","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":26,"box":{"x":102,"y":483,"width":773,"height":11}},{"id":"46bb67bb-d4f8-45d0-bdfc-6c38b4721d89","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":26,"box":{"x":69,"y":498,"width":804,"height":11}},{"id":"91f3e8b8-9b4c-4753-83eb-f62f643f5ed4","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":26,"box":{"x":70,"y":513,"width":656,"height":11}},{"id":"8ca8421f-ba18-47ed-896c-a03037cc145f","block_type":"box","text":"Investor A Shares","page_number":26,"box":{"x":669,"y":542,"width":102,"height":7}},{"id":"246e4d90-76a3-48d2-a1a0-d7290497e9f8","block_type":"box","text":"Gross","page_number":26,"box":{"x":551,"y":567,"width":32,"height":8}},{"id":"efb29bf9-9944-4c06-8300-0e8d259c29ac","block_type":"box","text":"Sales","page_number":26,"box":{"x":551,"y":578,"width":32,"height":7}},{"id":"00d8ff1c-a287-4d54-92cd-572e4c29d8d2","block_type":"box","text":"Charges","page_number":26,"box":{"x":543,"y":588,"width":48,"height":8}},{"id":"68221a9f-0793-4c81-ac2b-f69f3683ca0d","block_type":"box","text":"Collected","page_number":26,"box":{"x":540,"y":598,"width":54,"height":7}},{"id":"510e315e-6736-4a08-b6dc-49b034a8aac0","block_type":"box","text":"Sales","page_number":26,"box":{"x":652,"y":567,"width":31,"height":8}},{"id":"8e8a1e4f-3a73-4bf3-8b5a-1024eac3013c","block_type":"box","text":"Charges","page_number":26,"box":{"x":644,"y":578,"width":48,"height":8}},{"id":"4d83def8-d23d-4840-afa5-31c866477731","block_type":"box","text":"Retained by","page_number":26,"box":{"x":634,"y":588,"width":68,"height":8}},{"id":"f1a7415c-9e2b-4ccf-b400-6822b1e3d239","block_type":"box","text":"BRIL","page_number":26,"box":{"x":655,"y":598,"width":27,"height":7}},{"id":"3c02bc63-7729-42ce-b362-37e233aae431","block_type":"box","text":"Sales","page_number":26,"box":{"x":748,"y":567,"width":31,"height":8}},{"id":"c3ab5829-5b34-4590-a3a0-87f482bc70c6","block_type":"box","text":"Charges","page_number":26,"box":{"x":740,"y":578,"width":47,"height":8}},{"id":"0a1708bf-0d86-4649-90da-a8b0f9fbb8b4","block_type":"box","text":"Paid to","page_number":26,"box":{"x":744,"y":588,"width":40,"height":7}},{"id":"84d4a876-1e5f-4053-8d8b-a68666774b34","block_type":"box","text":"Affiliates","page_number":26,"box":{"x":738,"y":598,"width":51,"height":7}},{"id":"9b520a89-640f-4010-8159-8216fb2882a2","block_type":"box","text":"CDSCs","page_number":26,"box":{"x":847,"y":557,"width":40,"height":7}},{"id":"ca88da30-e938-4136-a594-08342a8def57","block_type":"box","text":"Received on","page_number":26,"box":{"x":832,"y":567,"width":70,"height":8}},{"id":"2e0c86df-929f-4adc-8de0-9f7ebb18d527","block_type":"box","text":"Redemption of","page_number":26,"box":{"x":826,"y":577,"width":84,"height":9}},{"id":"29c26a65-b79f-47b6-9e93-64d935b56964","block_type":"box","text":"Load-Waived","page_number":26,"box":{"x":832,"y":588,"width":71,"height":7}},{"id":"efa41305-e704-4cf1-b788-1666e2177a94","block_type":"box","text":"Shares","page_number":26,"box":{"x":847,"y":598,"width":40,"height":7}},{"id":"b5c50b0d-a0fb-43a8-92fb-00ddb2f7c457","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":26,"box":{"x":70,"y":615,"width":242,"height":11}},{"id":"970412a1-9cdd-45e1-9217-056a8c208c7f","block_type":"box","text":".......................","page_number":26,"box":{"x":319,"y":623,"width":181,"height":1}},{"id":"e38f93ef-c124-470d-b6a8-0d105160b24f","block_type":"box","text":"$219,264 $17,765 $17,765 $2,325","page_number":26,"box":{"x":531,"y":615,"width":362,"height":11}},{"id":"0fb76d55-2429-468d-b9e1-2e32b089b438","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":26,"box":{"x":70,"y":631,"width":242,"height":11}},{"id":"695465f2-501e-497a-9bee-dd60d1e74163","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . $ 89,075 $ 6,682 $ 6,682 $ 626","page_number":26,"box":{"x":319,"y":630,"width":574,"height":11}},{"id":"fb3c8ade-8586-4267-a17a-c37818dfe6b7","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":26,"box":{"x":70,"y":646,"width":242,"height":11}},{"id":"82ad5c2f-7aed-498c-b10a-889d1d33c31f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . $ 88,751 $ 6,993 $ 6,993 $1,460","page_number":26,"box":{"x":319,"y":645,"width":574,"height":11}},{"id":"38008aa0-70c5-449c-b7bd-d86fde6e629a","block_type":"box","text":"Investor C Shares","page_number":26,"box":{"x":760,"y":675,"width":103,"height":7}},{"id":"6d0c3bb9-1d08-4ffa-8947-e7b95a2df5f8","block_type":"box","text":"CDSCs Received","page_number":26,"box":{"x":713,"y":691,"width":97,"height":7}},{"id":"6631d043-2611-412f-9887-f3ba810d9dc3","block_type":"box","text":"by BRIL","page_number":26,"box":{"x":740,"y":701,"width":44,"height":9}},{"id":"ea46c259-4cec-4a77-a824-4bbede60605f","block_type":"box","text":"CDSCs Paid","page_number":26,"box":{"x":840,"y":691,"width":69,"height":7}},{"id":"01f9a8b6-0eac-48d4-b8c4-268cd2702b26","block_type":"box","text":"to Affiliates","page_number":26,"box":{"x":841,"y":701,"width":68,"height":7}},{"id":"67e3c636-6e24-4007-8fc0-740bec649533","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":719,"width":474,"height":11}},{"id":"12e784ba-f991-4300-9122-09e28eddbd74","block_type":"box","text":". . . . . . . . . . . . . . . . . $1,210 $1,210","page_number":26,"box":{"x":550,"y":718,"width":351,"height":11}},{"id":"f76e18f1-343b-4d0a-9631-a1a02babb6a3","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":734,"width":474,"height":11}},{"id":"620718cd-81ed-4c02-a5a5-3cb50850ca67","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 161 $ 161","page_number":26,"box":{"x":550,"y":733,"width":351,"height":11}},{"id":"018c922a-c3f7-4fbd-ab56-8230baf6302c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":749,"width":474,"height":11}},{"id":"2b1e3957-e943-411a-88a2-7621d8279cbc","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 76 $ 76","page_number":26,"box":{"x":550,"y":748,"width":351,"height":11}},{"id":"62b12df8-3acc-4b9b-a522-d2511cf6951f","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":26,"box":{"x":101,"y":773,"width":805,"height":11}},{"id":"239944eb-4dbb-42a1-b526-107781ab17a6","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A portion of the fees collected by BRIL were paid to affiliates for providing","page_number":26,"box":{"x":68,"y":788,"width":796,"height":11}},{"id":"f6f36bba-9639-4653-a5c4-24a82f9db72d","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":26,"box":{"x":69,"y":803,"width":826,"height":11}},{"id":"10648eb7-4005-4df6-8c22-2e451362dfeb","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":26,"box":{"x":69,"y":818,"width":409,"height":9}},{"id":"3cb6fa58-f5ad-4611-adb5-39f02f4c132b","block_type":"box","text":"Class Name","page_number":26,"box":{"x":69,"y":847,"width":68,"height":7}},{"id":"a134573f-af73-4ae1-bf75-7a403ef656ba","block_type":"box","text":"Fees Paid to BRIL","page_number":26,"box":{"x":806,"y":847,"width":103,"height":7}},{"id":"db38b302-1ab1-4b3e-bb77-bf2f35b00913","block_type":"box","text":"Investor A Shares .","page_number":26,"box":{"x":70,"y":864,"width":134,"height":9}},{"id":"5f6bb19c-68fe-4efa-8287-da2c5b6121df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":26,"box":{"x":210,"y":864,"width":626,"height":11}},{"id":"797336ca-de34-455d-ad17-0a2e19883722","block_type":"box","text":"115,209","page_number":26,"box":{"x":839,"y":864,"width":62,"height":11}},{"id":"0f9cac50-7174-4e16-b497-d79d0135678b","block_type":"box","text":"Investor C Shares . . .","page_number":26,"box":{"x":70,"y":879,"width":150,"height":9}},{"id":"c23c69cc-d215-4cac-ace6-a1ac028ba781","block_type":"box","text":".................................................................... $","page_number":26,"box":{"x":226,"y":879,"width":596,"height":10}},{"id":"60211198-2b2d-4e51-b1ac-34ab6b78151a","block_type":"box","text":"194,051","page_number":26,"box":{"x":839,"y":879,"width":62,"height":11}},{"id":"17ac5b49-d171-43f1-9908-b44355abab93","block_type":"box","text":"Class R Shares","page_number":26,"box":{"x":69,"y":895,"width":109,"height":8}},{"id":"df435d4b-28f0-471c-8b80-9f189f392d98","block_type":"box","text":"......................................................................... $","page_number":26,"box":{"x":185,"y":894,"width":637,"height":10}},{"id":"1c5a4e2e-8b3a-40e0-a0ca-0038513c7eb1","block_type":"box","text":"219,422","page_number":26,"box":{"x":839,"y":895,"width":61,"height":10}},{"id":"c4799155-3089-49ba-abd3-49a12cbad251","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c19215e0-0e0d-4f17-9c2f-f86c954335c9","block_type":"box","text":"NM1026U-5978945-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"eba49fdb-af1c-4834-820c-0c1130c804a5","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":27,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"76ab31c3-b968-436f-aefb-23de3606d48b","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":27,"box":{"x":101,"y":67,"width":805,"height":12}},{"id":"c7be0776-37e7-4aa6-b879-354191bddbaf","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026, is set","page_number":27,"box":{"x":68,"y":82,"width":827,"height":12}},{"id":"7b1117ae-78f3-4ae6-a036-5875d880c2be","block_type":"box","text":"forth below.","page_number":27,"box":{"x":68,"y":98,"width":83,"height":9}},{"id":"cd719a9d-d33f-448d-9f03-0b86417d0519","block_type":"box","text":"Investor A Shares","page_number":27,"box":{"x":805,"y":126,"width":102,"height":7}},{"id":"b6233ce1-92e7-4254-9fc4-1e7606830a92","block_type":"box","text":"Net Assets","page_number":27,"box":{"x":70,"y":144,"width":76,"height":9}},{"id":"c637dc97-9415-471c-ad6b-0f4854e68a75","block_type":"box","text":".............................................................................","page_number":27,"box":{"x":150,"y":151,"width":621,"height":1}},{"id":"546bbf62-e98b-452d-91cb-ff3a1855d0ec","block_type":"box","text":"$501,978,371","page_number":27,"box":{"x":803,"y":143,"width":106,"height":11}},{"id":"95c61659-a7ac-431c-ae29-af6d386e433e","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":27,"box":{"x":70,"y":159,"width":245,"height":11}},{"id":"31ec7c4f-f2b5-4750-8e02-373800ab7a67","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,","page_number":27,"box":{"x":321,"y":159,"width":524,"height":10}},{"id":"70e01d30-8a96-4ea4-bf56-1b6ddf214190","block_type":"box","text":"107,061","page_number":27,"box":{"x":847,"y":159,"width":62,"height":10}},{"id":"10e07671-6c10-469d-9aa9-bf8d26b5d7f9","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":27,"box":{"x":70,"y":174,"width":571,"height":11}},{"id":"815366a0-a16b-4166-8f18-478d7a23bebc","block_type":"box","text":"................","page_number":27,"box":{"x":647,"y":181,"width":124,"height":2}},{"id":"a0ed9af9-d757-4064-a2ce-4ed41e9a0a8d","block_type":"box","text":"$24.97","page_number":27,"box":{"x":857,"y":173,"width":51,"height":11}},{"id":"bf3e210f-c971-4975-85c7-d04bd86362b7","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":27,"box":{"x":69,"y":189,"width":534,"height":11}},{"id":"abe38a0a-82cb-4c83-9beb-a7defe63768f","block_type":"box","text":"1","page_number":27,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"ae7e12be-7af7-4744-9068-bae29f0a009d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . 1.38","page_number":27,"box":{"x":615,"y":189,"width":294,"height":9}},{"id":"aab3cc76-e512-4ba7-88de-1d171a8561a0","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":69,"y":208,"width":702,"height":12}},{"id":"a9c87259-29a0-4c18-b9d1-ff7b7586df7b","block_type":"box","text":"$26.35","page_number":27,"box":{"x":857,"y":208,"width":52,"height":10}},{"id":"a44470ba-f7aa-44ab-9f4f-c3a5b69a429e","block_type":"box","text":"1","page_number":27,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"400951f0-c296-4015-a43d-16878b7e725f","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":27,"box":{"x":94,"y":241,"width":541,"height":8}},{"id":"6ea3abbc-6d3c-413b-a5a6-c9c725f64ac4","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":27,"box":{"x":101,"y":261,"width":796,"height":12}},{"id":"7bd3be91-04b0-4c9d-bfde-27c6215301dd","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":27,"box":{"x":69,"y":276,"width":833,"height":12}},{"id":"a8bda1a8-3f20-4fe2-8b97-63a5f82ff1a1","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":27,"box":{"x":69,"y":292,"width":813,"height":11}},{"id":"da2f1809-168d-4d93-8b85-46eb3c43d54f","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":27,"box":{"x":69,"y":307,"width":377,"height":11}},{"id":"0e742db1-7b6a-4c0a-8537-479599319c80","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":27,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"73de17fc-14e3-40b9-9f28-474939953222","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":27,"box":{"x":102,"y":360,"width":609,"height":11}},{"id":"a582d1fa-fb67-4be1-bfd4-ac662915598f","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, is set","page_number":27,"box":{"x":102,"y":382,"width":794,"height":12}},{"id":"5bfb5c20-5d14-4f43-b82d-091a50bc1dfe","block_type":"box","text":"forth in the following table:","page_number":27,"box":{"x":68,"y":397,"width":191,"height":12}},{"id":"9bf3c518-16f3-4a18-84dd-31a29816751b","block_type":"box","text":"Aggregate Brokerage","page_number":27,"box":{"x":613,"y":426,"width":125,"height":9}},{"id":"b07fa7f5-922a-4ba6-9cf2-ee99e9660406","block_type":"box","text":"Commissions Paid","page_number":27,"box":{"x":623,"y":436,"width":106,"height":7}},{"id":"c23e31f1-23be-49a5-af62-3a493a6c3167","block_type":"box","text":"Brokerage Commissions","page_number":27,"box":{"x":769,"y":426,"width":140,"height":9}},{"id":"3f4e28c1-a848-435c-8b99-2e15cca30394","block_type":"box","text":"Paid to Affiliates","page_number":27,"box":{"x":791,"y":436,"width":96,"height":7}},{"id":"6165d15e-80e9-4e1d-8db4-34003fe80034","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":27,"box":{"x":70,"y":454,"width":230,"height":11}},{"id":"732cd706-7150-48cb-863a-fd075cbd756f","block_type":"box","text":"1","page_number":27,"box":{"x":301,"y":454,"width":4,"height":4}},{"id":"855eef50-ea93-4c44-a1cf-339478f7acbc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":27,"box":{"x":311,"y":453,"width":344,"height":11}},{"id":"d3551a26-895a-4f7f-b65a-b3d467398cc5","block_type":"box","text":"203,049 $0","page_number":27,"box":{"x":657,"y":453,"width":191,"height":11}},{"id":"7b52ef02-184b-40de-87f2-5288d5b57820","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":27,"box":{"x":70,"y":469,"width":230,"height":11}},{"id":"3d397401-ac3e-4fb6-ad5e-6a6e99174eda","block_type":"box","text":"1","page_number":27,"box":{"x":301,"y":469,"width":4,"height":4}},{"id":"60692a61-1148-4c5c-9ad2-e13ebd9fc855","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":27,"box":{"x":311,"y":468,"width":344,"height":11}},{"id":"5df9b2ed-3aa1-4887-8c0c-fd870e25d87e","block_type":"box","text":"847,371 $0","page_number":27,"box":{"x":657,"y":468,"width":191,"height":11}},{"id":"6b37996a-43db-4a49-8690-be93ac6a2c43","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":27,"box":{"x":70,"y":484,"width":292,"height":11}},{"id":"864cd5bb-b3fe-40f8-a7a0-4f9d0c3f94bf","block_type":"box","text":"........................... $","page_number":27,"box":{"x":369,"y":483,"width":272,"height":11}},{"id":"d29665c9-d521-499f-a92a-ebd018be1e1a","block_type":"box","text":"805,360 $0","page_number":27,"box":{"x":657,"y":483,"width":191,"height":11}},{"id":"123ec1bf-6493-42ca-9f2e-6e3c37f9fb51","block_type":"box","text":"1","page_number":27,"box":{"x":69,"y":508,"width":3,"height":4}},{"id":"fe35b2af-1593-4616-8a3b-0007c54c0993","block_type":"box","text":"The increase in brokerage commissions paid by the Fund as compared to the prior fiscal year was primarily due to an increase in Fund assets","page_number":27,"box":{"x":93,"y":508,"width":808,"height":9}},{"id":"2f20a671-37cb-4e14-8239-7f2a6b2d3d77","block_type":"box","text":"under management.","page_number":27,"box":{"x":94,"y":518,"width":112,"height":9}},{"id":"b3dcaf62-23ff-4cf1-8f35-345474a6f17d","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":27,"box":{"x":101,"y":539,"width":770,"height":11}},{"id":"2d193884-2d8b-4012-beaf-ebaebeaaa861","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":27,"box":{"x":69,"y":554,"width":814,"height":12}},{"id":"c6e579db-c788-4c31-9f34-8b634423464c","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":27,"box":{"x":68,"y":569,"width":829,"height":12}},{"id":"0d057f7b-1b0f-4620-a4d7-cae5955f43c3","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":27,"box":{"x":69,"y":584,"width":822,"height":12}},{"id":"408d3126-9449-4f94-81ed-ac06f1c0a8f7","block_type":"box","text":"with such brokers.","page_number":27,"box":{"x":68,"y":600,"width":130,"height":9}},{"id":"f2697833-8ddd-4338-9f52-355e10c94dd0","block_type":"box","text":"Amount of Commissions","page_number":27,"box":{"x":355,"y":628,"width":141,"height":7}},{"id":"beaeabc3-af1c-4807-bbce-c7c6250e830c","block_type":"box","text":"Paid to Brokers for","page_number":27,"box":{"x":371,"y":638,"width":110,"height":7}},{"id":"c0135077-afa7-4519-9696-2674a0c4e942","block_type":"box","text":"Providing 28(e) Eligible","page_number":27,"box":{"x":358,"y":648,"width":136,"height":9}},{"id":"0ae5e463-bf79-4c9d-8f7c-5822c697a442","block_type":"box","text":"Research Services","page_number":27,"box":{"x":372,"y":658,"width":108,"height":7}},{"id":"92ffd656-2c35-4523-88b0-7612b80d1f80","block_type":"box","text":"Amount of Brokerage","page_number":27,"box":{"x":588,"y":648,"width":124,"height":9}},{"id":"ffdd1eaa-fd6f-4257-904b-827034601037","block_type":"box","text":"Transactions Involved","page_number":27,"box":{"x":587,"y":658,"width":126,"height":7}},{"id":"982066f2-2e90-4133-8287-312a455df83e","block_type":"box","text":"$1,170,463 $3,897,286,044","page_number":27,"box":{"x":382,"y":675,"width":329,"height":11}},{"id":"294d1dcf-a4d4-4f9a-ba22-7950b2a61b5b","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":27,"box":{"x":101,"y":700,"width":796,"height":11}},{"id":"6bf10d06-12d9-47b1-bd6c-fd613b864d78","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of May 31, 2026 if any portion of such holdings were","page_number":27,"box":{"x":70,"y":715,"width":821,"height":11}},{"id":"84030207-7e3c-4233-afdc-550c9dc61245","block_type":"box","text":"purchased during the fiscal year ended May 31, 2026, is as follows:","page_number":27,"box":{"x":70,"y":730,"width":485,"height":11}},{"id":"656ffa77-c889-46bc-a7c5-56d1deb81e55","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":27,"box":{"x":69,"y":758,"width":840,"height":9}},{"id":"02a771c3-cc2a-4c8d-9f85-d013851cae31","block_type":"box","text":"Barclays Capital, Inc.","page_number":27,"box":{"x":70,"y":776,"width":147,"height":11}},{"id":"43f31ba3-d2bc-47b5-94e3-0e26ea867656","block_type":"box","text":"........................................... E","page_number":27,"box":{"x":227,"y":776,"width":437,"height":9}},{"id":"68544d83-3533-48c1-8154-d5f4470c40e2","block_type":"box","text":"$94,749","page_number":27,"box":{"x":797,"y":775,"width":62,"height":11}},{"id":"625488b0-ec00-4fec-b460-853aaeb984b3","block_type":"box","text":"BNP Paribas Securities Corp. .","page_number":27,"box":{"x":70,"y":791,"width":216,"height":11}},{"id":"713fc470-b581-43bc-91bd-0fe5dabc085c","block_type":"box","text":"................................... E","page_number":27,"box":{"x":292,"y":791,"width":372,"height":9}},{"id":"8c29f0b7-4a95-43bf-988d-134977b3c1d2","block_type":"box","text":"$84,492","page_number":27,"box":{"x":797,"y":790,"width":62,"height":12}},{"id":"135d490e-ace9-48b5-a7db-f67d4c15cf2c","block_type":"box","text":"UBS Securities LLC","page_number":27,"box":{"x":70,"y":806,"width":135,"height":9}},{"id":"8ea7ed83-2089-428b-b984-ad1a49c69393","block_type":"box","text":"............................................. E","page_number":27,"box":{"x":210,"y":806,"width":454,"height":9}},{"id":"e8998231-80c3-476e-8607-2d7b76b3cf33","block_type":"box","text":"$80,103","page_number":27,"box":{"x":797,"y":806,"width":62,"height":11}},{"id":"fe02087d-f40b-4156-941c-f83d851ef605","block_type":"box","text":"Securities Lending","page_number":27,"box":{"x":68,"y":838,"width":135,"height":11}},{"id":"493353df-d464-441e-b83c-40d5af74a25d","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":27,"box":{"x":101,"y":861,"width":807,"height":11}},{"id":"b00e9f77-45bf-43d3-b92b-589d3ee64269","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":27,"box":{"x":69,"y":875,"width":817,"height":12}},{"id":"bf02f1a3-eed0-454c-9bbf-5aa3e417c193","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":27,"box":{"x":69,"y":891,"width":813,"height":11}},{"id":"3a8ede17-1b2e-4b41-9b74-138f65a0eafc","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":27,"box":{"x":70,"y":906,"width":838,"height":11}},{"id":"613b08f2-5b2d-4c4d-aa40-fdaf49a656fb","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5e647609-773e-413f-8676-77a6354a0104","block_type":"box","text":"NM1026U-5978945-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2005e9c5-6238-4f4b-8afe-a82067dffe7d","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":28,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"c4ad2546-20dd-423c-b88e-c108db4ceb39","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":28,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"cffce2f1-f145-44d0-8fc6-62257a3e2930","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":28,"box":{"x":101,"y":82,"width":735,"height":12}},{"id":"12680fb4-8168-4358-bb4c-23831b5d8764","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":28,"box":{"x":69,"y":98,"width":834,"height":11}},{"id":"e507f6c6-aa0b-4d1f-b844-66023d53c621","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":28,"box":{"x":70,"y":113,"width":822,"height":11}},{"id":"a5ad88f8-6e16-4d17-b7be-1c90a693078b","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":28,"box":{"x":69,"y":128,"width":787,"height":11}},{"id":"317720d8-aa51-4954-a680-a550cdd23edd","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":28,"box":{"x":69,"y":143,"width":783,"height":11}},{"id":"a54ddbd2-19c2-4d79-ae32-dcc4f48be3f1","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":28,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"839ab57d-89b8-4aa1-9220-576e3aa49e45","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":28,"box":{"x":70,"y":173,"width":813,"height":11}},{"id":"f2dcfb16-d22d-436f-92f8-4600ea7fa975","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":28,"box":{"x":70,"y":188,"width":830,"height":12}},{"id":"0b54bfac-40ff-43ce-a353-602c2ef1da06","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":28,"box":{"x":69,"y":203,"width":773,"height":12}},{"id":"961b9710-485c-4ea9-a0d4-eb0d2284a262","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":28,"box":{"x":101,"y":226,"width":776,"height":11}},{"id":"fdcdcb12-f266-4333-b5dd-0b768d9f553a","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":28,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"841c7345-f486-438f-81c7-6e8d24ea6220","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":28,"box":{"x":68,"y":256,"width":812,"height":12}},{"id":"60128165-d3c9-43cf-b7f5-4fa66e948ad7","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":28,"box":{"x":69,"y":271,"width":799,"height":12}},{"id":"cde7e855-db2d-4ceb-88e8-dd2a0083a25c","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":28,"box":{"x":68,"y":286,"width":835,"height":12}},{"id":"cc6cdfbf-cb40-416a-b92e-106afae8911d","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":28,"box":{"x":69,"y":302,"width":818,"height":11}},{"id":"6ba8ea58-506f-4567-9edd-4b82de928701","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":28,"box":{"x":68,"y":317,"width":789,"height":11}},{"id":"02619ccc-ddb7-4aeb-bd68-31cdf7fe6257","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":28,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"dfd2239b-4ff5-4bc0-b4ea-194c45ca2198","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":28,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"70f415d1-58c5-4cfa-ac99-bb39c2c85316","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":28,"box":{"x":69,"y":362,"width":802,"height":11}},{"id":"fcde10ea-1d72-4984-b25c-57e0e7459910","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":28,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"65c3a5ac-6550-4ef8-8caf-9a2358247fd3","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":28,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"72d87482-a3e9-4a01-8df1-3ae482387178","block_type":"box","text":"Fund’s returns on securities lending.","page_number":28,"box":{"x":70,"y":408,"width":258,"height":11}},{"id":"1fcae19e-f6b5-45ae-8e05-03de1620e846","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":28,"box":{"x":102,"y":430,"width":774,"height":11}},{"id":"7b9dee4a-0484-46cd-9ec1-f5a5e7d6ee5c","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":28,"box":{"x":69,"y":445,"width":790,"height":12}},{"id":"140f7212-9532-4d5e-8f23-79fd41ea967f","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":28,"box":{"x":68,"y":460,"width":809,"height":12}},{"id":"4ce6a5fd-382c-446e-a6ee-99fc466910c5","block_type":"box","text":"Fund and BIM.","page_number":28,"box":{"x":70,"y":476,"width":100,"height":8}},{"id":"587254c4-8f76-4e8b-aef6-858207dc51c8","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":28,"box":{"x":102,"y":498,"width":783,"height":11}},{"id":"d5b0af90-de4f-4668-91d5-dc180391924d","block_type":"box","text":"lending income (which excludes collateral investment expenses); and (ii) this amount can never be less than 70% of","page_number":28,"box":{"x":70,"y":513,"width":826,"height":12}},{"id":"311c7da7-060c-4862-bfc3-bcb0e01aa911","block_type":"box","text":"the sum of securities lending income plus collateral investment expenses.","page_number":28,"box":{"x":68,"y":528,"width":529,"height":12}},{"id":"058a9c6a-9f04-4bc7-ae0e-7b91731a763d","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":28,"box":{"x":102,"y":551,"width":753,"height":11}},{"id":"a888e2f7-381e-4ce1-93bf-8ad96efe5e68","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":28,"box":{"x":69,"y":566,"width":778,"height":11}},{"id":"364cc7ac-4f7d-4ad3-a870-3d626b11b414","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":28,"box":{"x":70,"y":581,"width":817,"height":12}},{"id":"b6929e3d-3017-45e3-9bf6-802a2785bdbb","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment expenses); and","page_number":28,"box":{"x":70,"y":596,"width":831,"height":12}},{"id":"6e4ea789-0018-4f8f-89f2-6665b2e084dd","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment","page_number":28,"box":{"x":69,"y":612,"width":786,"height":11}},{"id":"867a54fe-cae2-4250-b4b2-5bf71a4ebd2d","block_type":"box","text":"expenses.","page_number":28,"box":{"x":69,"y":629,"width":71,"height":9}},{"id":"90561c29-417c-4a88-a0ae-48944dfbdb77","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":28,"box":{"x":102,"y":649,"width":683,"height":12}},{"id":"838decf0-544c-4fc7-b459-5b864b4dcfe1","block_type":"box","text":"The services provided to the Fund by BIM, in the fiscal year ended May 31, 2026, primarily included the","page_number":28,"box":{"x":101,"y":672,"width":740,"height":11}},{"id":"39aad930-798f-472d-9c94-e1ec2626b0ab","block_type":"box","text":"following:","page_number":28,"box":{"x":68,"y":687,"width":66,"height":11}},{"id":"ef9f8e11-8b4b-4738-8201-7d16b0ff92a5","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":28,"box":{"x":69,"y":707,"width":818,"height":12}},{"id":"7630b55c-69ac-4666-ba93-0171d239e5c8","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":28,"box":{"x":102,"y":722,"width":333,"height":11}},{"id":"1fdbaef5-d0f1-44e0-b206-9d05991b4795","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":28,"box":{"x":69,"y":743,"width":538,"height":11}},{"id":"e3075c0f-9ca8-4b44-8b89-32c8d446e023","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":28,"box":{"x":69,"y":763,"width":330,"height":11}},{"id":"aaff2175-63f7-46ad-b8ab-44cec74cfa47","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":28,"box":{"x":69,"y":783,"width":834,"height":11}},{"id":"cce949ab-03e7-4e88-8ebe-16818d34439a","block_type":"box","text":"of excess collateral, as necessary;","page_number":28,"box":{"x":102,"y":798,"width":246,"height":11}},{"id":"1c069bfd-fa22-4dca-91bc-d65fed8c67a1","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":28,"box":{"x":69,"y":818,"width":562,"height":11}},{"id":"720ebcd2-cf06-4435-8032-46be4babb9ff","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":28,"box":{"x":69,"y":838,"width":665,"height":12}},{"id":"e95d960c-3b32-465e-b2fa-ea436ffa5c91","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":28,"box":{"x":69,"y":858,"width":822,"height":12}},{"id":"a9c47894-ea5d-4fa2-a4d2-1b9f8b57802f","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":28,"box":{"x":101,"y":874,"width":803,"height":11}},{"id":"7e5f3bb2-42f7-408a-8637-6f4a3030faf7","block_type":"box","text":"of the loaned securities; and","page_number":28,"box":{"x":102,"y":889,"width":203,"height":10}},{"id":"6fd2303f-cc34-458d-ac2b-ec15570f029f","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":28,"box":{"x":69,"y":909,"width":808,"height":11}},{"id":"904f0772-e4dc-4082-8856-71ba8cdf192b","block_type":"box","text":"I-26","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b5825d6d-d7c2-4fa0-abd3-589c2aebaa11","block_type":"box","text":"NM1026U-5978945-28/232","page_number":28,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"72a36b46-04bd-43e3-b821-98ee380d214b","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":29,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"a0c73f50-fd13-41d1-a434-848677caa21a","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":29,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"88f37bb2-47c3-4b7f-b8b6-7268fca563a7","block_type":"box","text":"Gross income from securities lending activities","page_number":29,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"bc115967-6677-404a-9b46-6ee725b4b422","block_type":"box","text":"...................................................","page_number":29,"box":{"x":416,"y":95,"width":409,"height":1}},{"id":"09abe001-93c6-4a39-a2d4-eda307699ba9","block_type":"box","text":"$32,883","page_number":29,"box":{"x":847,"y":87,"width":62,"height":11}},{"id":"56a51abc-aefd-46f9-8f6c-6781e7984f58","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":29,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"b8a2b3b4-363f-49f7-91b6-95b9ce801ba1","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":29,"box":{"x":79,"y":122,"width":599,"height":11}},{"id":"3e4ba7dd-78b6-41d8-897b-baab9e7e7017","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 981","page_number":29,"box":{"x":685,"y":121,"width":224,"height":11}},{"id":"feba2272-6fd3-4b5a-ae9d-d9efe5bb0888","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":29,"box":{"x":79,"y":137,"width":673,"height":12}},{"id":"f53dd8a3-f249-4de3-8557-a6851eee2751","block_type":"box","text":". . . . . . . . . $ 320","page_number":29,"box":{"x":758,"y":137,"width":151,"height":10}},{"id":"ad89de9c-4a53-48fc-8b58-635c3d28f36b","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":29,"box":{"x":78,"y":152,"width":551,"height":12}},{"id":"e080733e-c8c4-4995-b4ee-fcd5d9103e97","block_type":"box","text":"........................ $ 0","page_number":29,"box":{"x":636,"y":152,"width":273,"height":10}},{"id":"884ab699-d312-4695-b05f-8f2cc86b5e73","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":29,"box":{"x":79,"y":167,"width":567,"height":12}},{"id":"2f4055d2-2521-428c-b28c-57e0502a56b1","block_type":"box","text":"...................... $ 0","page_number":29,"box":{"x":652,"y":167,"width":257,"height":10}},{"id":"da2020b2-983e-46ec-a0cf-86434377843e","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":29,"box":{"x":79,"y":183,"width":289,"height":11}},{"id":"50a84d41-8927-49df-a01f-5c4bfb54cd72","block_type":"box","text":"........................................................","page_number":29,"box":{"x":375,"y":190,"width":450,"height":1}},{"id":"f7838e88-b9b1-444b-8488-334aef22ae4e","block_type":"box","text":"$31,582","page_number":29,"box":{"x":847,"y":182,"width":62,"height":11}},{"id":"7d7c45f0-09de-473c-bbd7-b2091f6f34e9","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":29,"box":{"x":79,"y":198,"width":542,"height":11}},{"id":"8bedf348-5129-4844-9721-ef08ee43a9a7","block_type":"box","text":"......................... $ 0","page_number":29,"box":{"x":628,"y":197,"width":281,"height":11}},{"id":"5edf2a08-64b9-446e-99f1-d394f3bdf754","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":29,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"5f7b0811-b271-4b5b-ba81-638d65a67fee","block_type":"box","text":".....................................","page_number":29,"box":{"x":530,"y":220,"width":295,"height":2}},{"id":"6c1350dd-6fc3-4a29-993c-44c28f397899","block_type":"box","text":"$32,883","page_number":29,"box":{"x":847,"y":212,"width":62,"height":12}},{"id":"5410b8cf-f668-413b-aa2b-c62d3f01cfb7","block_type":"box","text":"Net income from securities lending activities","page_number":29,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"995c073a-c880-44f4-80c2-f55d3d67097d","block_type":"box","text":".....................................................","page_number":29,"box":{"x":399,"y":240,"width":426,"height":1}},{"id":"b63abb85-b7d5-418a-88a8-de8093741711","block_type":"box","text":"$-","page_number":29,"box":{"x":847,"y":232,"width":62,"height":10}},{"id":"efe96900-d504-4614-bd3f-323460223bbc","block_type":"box","text":"VIII. Additional Information","page_number":29,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"9ed28c96-c59d-49aa-992b-418d9db534a1","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":29,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"96c410a0-675b-489d-a6e5-cc389a51b38c","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":29,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"4dae27a6-eddf-4640-a2d4-d7f9e4ab04f2","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":29,"box":{"x":69,"y":306,"width":772,"height":11}},{"id":"77932db9-940a-4fb0-80e2-e305d7ecd2d6","block_type":"box","text":"Counsel.","page_number":29,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"2c146b90-d88a-42fe-b987-3bbc4db5aefc","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":29,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"b5ef2601-4382-4c85-806a-09e702d41636","block_type":"box","text":"the Fund’s counsel.","page_number":29,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"26548a78-2980-4a88-a598-5d918f0dbebc","block_type":"box","text":"The Trust","page_number":29,"box":{"x":70,"y":374,"width":66,"height":9}},{"id":"876ffa5d-9846-415e-a240-d3df7625f846","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":29,"box":{"x":101,"y":397,"width":807,"height":11}},{"id":"30a70f00-0af3-4b60-81e5-b15e30f50e64","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Fund is diversified. The Trust is","page_number":29,"box":{"x":70,"y":412,"width":800,"height":11}},{"id":"419f0fa3-3581-47f0-b762-73b8cb705e32","block_type":"box","text":"authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share, which","page_number":29,"box":{"x":69,"y":426,"width":827,"height":12}},{"id":"8f90e016-5a21-46f1-b6c4-1f9dbccb9b89","block_type":"box","text":"may be divided into different series and classes. Effective on June 23, 2015, all of the issued and outstanding","page_number":29,"box":{"x":69,"y":442,"width":793,"height":11}},{"id":"035303aa-1e4a-4260-ad94-ac146e35305f","block_type":"box","text":"Investor B Shares of the Fund were converted into Investor A Shares.","page_number":29,"box":{"x":70,"y":457,"width":491,"height":9}},{"id":"707d0d7a-dba0-4024-a06a-2facf250a5f1","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under certain circumstances, be held","page_number":29,"box":{"x":102,"y":480,"width":734,"height":11}},{"id":"efba54d6-0f98-498d-b7fd-57e732f4095f","block_type":"box","text":"personally liable as partners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":29,"box":{"x":70,"y":495,"width":822,"height":11}},{"id":"8b03aca4-f0a3-4363-8f8c-bc760c81c368","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":29,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"d3bc7624-c8ca-4890-a4c3-03fa16284e95","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other undertaking made by the Trust shall","page_number":29,"box":{"x":69,"y":525,"width":794,"height":12}},{"id":"419ddfe9-915b-4bef-9a51-97307025baae","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":29,"box":{"x":69,"y":540,"width":824,"height":12}},{"id":"d65aa765-5b08-4d90-91ce-5dac98c372b7","block_type":"box","text":"provides for indemnification out of property of any shareholder held personally liable solely by reason of his being or","page_number":29,"box":{"x":70,"y":555,"width":827,"height":12}},{"id":"f7b6d0cf-4359-474a-a90e-0a708221c813","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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Additional copies of the Fund’s annual and semi-annual reports to","page_number":31,"box":{"x":69,"y":355,"width":815,"height":11}},{"id":"f2a1b910-a0f8-4784-bb81-261c8746fe7e","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":31,"box":{"x":69,"y":370,"width":785,"height":11}},{"id":"6c802e56-aa55-4415-b68e-9b2b2e1c8a8f","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":31,"box":{"x":69,"y":385,"width":836,"height":12}},{"id":"bc37d607-3223-4e42-b84c-8d78c6158ffc","block_type":"box","text":"I-29","page_number":31,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"6afbe2c6-e244-4e95-87c7-7992a1edd531","block_type":"box","text":"NM1026U-5978945-31/232","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8a4879e5-13d6-4e83-b054-5a5b76934f36","block_type":"box","text":"PART II","page_number":32,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"e669ae69-db73-4d65-b85a-949152c2f1b4","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":32,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"f2c6d4a3-6417-4300-8e8d-5450af97b413","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":32,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"bc78c6f8-ec30-41b6-a2ef-04395a8b3cdb","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":32,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"4b908e36-f403-45f8-9367-64306ffc6ae5","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":32,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"57d8bd10-dca7-45c8-a6c6-0db619e4f097","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":32,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"3704b05b-0b14-4293-8919-352969e07e47","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":32,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"00b99300-0fa4-484a-aa08-9d64ac318cc1","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":32,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"11830930-118c-4f8f-a616-7231ad7c9187","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":32,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"23ac25df-77f8-45a9-9c83-3562c0623057","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":32,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"33151fac-c7fb-4a2e-bf77-1d9a75430467","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":32,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"6c787b96-9cad-4aa4-82b3-63f12aec04fe","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":32,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"9b0d2a9c-fb4f-4dd2-91be-347eba40a14a","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":32,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"51e4d515-c2ae-443a-a493-aa5c906e37f5","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":32,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"720753fd-5489-4862-a35c-0b2582d3427c","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":32,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"ec26e787-88a8-400f-99cb-8bbbf9397912","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":32,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"72f213f0-2da7-4e16-8e9a-a60aeba53c55","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":32,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"762481a4-913f-4f9c-a02c-e0f6ef0333c9","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":32,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"ed632109-0182-42c6-a8ff-04484d15dddd","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":32,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"589aa1f5-0931-4f26-b24a-5b6d83f206a5","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":32,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"fd9aa8f4-7ba1-4162-845f-c59b68d1b1b3","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":32,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"ea5e146e-8b6d-4652-8410-b35ffe75a22c","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":32,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"60da788b-ef5d-45a9-b4b8-cb324d5c124a","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":32,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"88471ba6-52ac-4dd3-a100-c65533a2a801","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":32,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"f82e11be-83e1-416d-a06f-02143d50de91","block_type":"box","text":"particular Fund.","page_number":32,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"da6cbacc-aa16-4442-8b8b-d2e8088e5220","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":32,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"217fcf21-faef-4990-957b-77ca9d3a7fe4","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":32,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"745d79b1-2772-425e-a054-e393ef9c7f3b","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":32,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"af7f784c-c98d-43c6-8792-3d0d4882f62a","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":32,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"81aca25a-6755-4027-abb3-ba286baff146","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":32,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"468be3be-3c96-44ce-b07d-c1dd7c98b58b","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":32,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"e5c4833e-8d37-4f6b-9b71-d0ca46af6373","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":32,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"1f9baa24-f873-436a-84f0-db97c7758e9b","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":32,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"8a8df812-a2b0-44a5-bd38-c6a17f3de74d","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":32,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"4c42fcee-a76d-43ce-bafd-241c69f2c9be","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":32,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"ee5be94a-dd1b-48a6-bfe3-4d7f4469860a","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":32,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"f5ea6856-b3ad-4c64-939d-465508e882c6","block_type":"box","text":"Asset-Backed Securities.","page_number":32,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"d594a838-8322-4a83-8f5c-85d0488053ed","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":32,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"b878b20f-ed93-4380-9cf6-b2cdd6f77daf","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":32,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"dcfd1fd3-bf60-4594-8ef9-5c5d9cbabf46","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":32,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"0d65b0b0-ab9a-46f2-934f-c8de5df2c993","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":32,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"7342b11b-7dff-47c8-ac4d-b29e958d1c1f","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":32,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"7f89b97d-e84b-4fe4-9603-eedf35cec6da","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":32,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"0e9e9282-3fdc-409b-9810-fc98b1068c53","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":32,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"ad56944b-d4b9-44f4-90c7-fa9571f0d119","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":32,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"a16ae6f3-6256-4d00-b96f-ff0f416300ff","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":32,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"61cd1fa4-89d2-467d-a079-bf3b9bdba6e9","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":32,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"81dc48df-6dcf-4297-991b-cf667016fa9d","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":32,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"ce7afda7-b512-4102-80b1-4c39dc20db80","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":32,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"94439173-3f08-47b5-92aa-e9bed27a6120","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":32,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"bf9d5b3c-a756-4bef-b7fd-349cf71e03d9","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":32,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"6aa9fb54-ae30-4a12-915e-17e3efe1fd4c","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":32,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"2dcf39d7-a524-4eaf-895d-e5161567910e","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":32,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"0a91e04d-6162-4249-b807-bcd2283de271","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":32,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"42b4b0d1-dfe3-4c3a-b695-1c44d0413169","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":32,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"b0a86101-395b-4d66-af68-9c4068550bb9","block_type":"box","text":"II-1","page_number":32,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"d65a54dc-1c08-4b7b-a345-87c4d42fc6a0","block_type":"box","text":"NM1026U-5978945-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"335091aa-01e2-4783-b6c3-fd5f7e39e21c","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":33,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"02a351f4-5c79-4c16-96b0-e586055dcfd1","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":33,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"deda0126-f3e4-432c-8160-f4d26ed7b0ad","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":33,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"dd8b855c-f116-488b-a004-fa2e0a96b6b1","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":33,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"8e3a9a10-8742-4fdc-ada2-74952b94154e","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":33,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"e2e5d2a2-96bc-4ff6-acd8-22cbd8eeb825","block_type":"box","text":"Asset-Based Securities.","page_number":33,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"0b3f797e-1405-4a8c-9b78-67161b38f0ae","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":33,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"b3cb8f87-d33c-4b2e-9476-b3ffdf8cf74c","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":33,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"b0d4f5b0-55f2-44a2-ac0d-9dbfd8d747b0","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":33,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"6cbf770f-8253-4cc2-b770-68f608c9648c","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":33,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"dca59f2d-0c51-4108-a5d1-cb7a95c3eb94","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":33,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"de5365d4-228d-426f-ba03-01e4039d0ebb","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":33,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"916e6e4a-e49f-41e4-a98f-deb7d83f74c5","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":33,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"941c109e-fea4-4de9-a9ab-9a206b5ee886","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":33,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"0b7eee05-8d42-45bc-979a-0f03d6668465","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":33,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"000f1fab-0910-4c92-a1fd-2c4294ae492d","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":33,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"a355c20a-b802-46ea-80f2-4d170d8dda41","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":33,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"4d329437-ccb9-451e-bed6-6455bc644438","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":33,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"a906690e-8f03-48ae-b281-8f448fcd22a8","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":33,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"4c315736-c073-48bc-ab04-638b42f0aa4c","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":33,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"6df7a0f2-b381-4ca1-a7a6-4a17d383369a","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":33,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"7db2d29a-a9ca-457f-92df-f39e839111a7","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":33,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"fb7af5bd-93d6-4a09-a817-93ac3e50308a","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":33,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"b452e234-8dfa-483b-ad22-b8edf28e8cbf","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":33,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"3f6b22cb-cc39-442f-a3ac-586e3c0da879","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":33,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"056ecb84-8eac-4a75-b8bc-41668e7d68df","block_type":"box","text":"appreciation in the underlying asset.","page_number":33,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"090719ee-8632-4cdd-88e4-684758872616","block_type":"box","text":"Precious Metal-Related Securities.","page_number":33,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"ba202d16-feb2-4eca-8e72-c22d1bfae3c2","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":33,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"f21875e9-7e83-4123-aa28-7ee3aa0c9db0","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":33,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"43ce2ea3-9b63-4855-b3f5-ce8cab3050ea","block_type":"box","text":"e.g.","page_number":33,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"c96b8bc9-3506-4bf1-8108-ff8999f6f720","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":33,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"1a2f362e-4220-469a-881a-bf9234fc091a","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":33,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"f11674c7-ded2-47d5-bfa4-59d1db5d78a6","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":33,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"200f6cd6-fe01-4719-b415-9e5ba951ac19","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":33,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"2ebb49b3-f062-4de9-9eb3-05bac8f6afcf","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":33,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"0a0748ca-6bc1-44af-967d-d6c610631eec","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":33,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"fdd06a54-4e34-42d9-9b92-02d5e16a4a9c","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":33,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"b2248f6c-0818-4f67-878c-7c487db7b0d2","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":33,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"797b9525-9671-4b2f-9541-be943d1c93e3","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":33,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"9f164538-e71c-4d97-a345-61b4da97d9f1","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":33,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"801b5c5d-77ee-4c2d-993f-e348d03405f5","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":33,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"26a4691a-d813-4f6e-8aa4-a263f6b133ae","block_type":"box","text":"South African gold production.","page_number":33,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"3bcad421-fafe-480b-b2b5-0f9fb7027128","block_type":"box","text":"Borrowing and Leverage.","page_number":33,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"3d506415-e49b-4a78-a334-66d713107ee7","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":33,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"7ac438ef-c2b7-409c-8237-be875b2967dd","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":33,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"cd1e9380-c43a-402e-bbde-16ef5200ce11","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":33,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"f4712436-30ae-4176-b379-f5f982898a61","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":33,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"c281e36f-f740-4324-83e1-b67c3db2bf76","block_type":"box","text":"other securities transactions.","page_number":33,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"093ddb5b-2b2b-448e-b84c-59b85aff2ede","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":33,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"e05d6666-bc48-4805-b636-2f4f2191f4f8","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":33,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"2d899c7e-8ca5-4682-9b67-49ff84033572","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":33,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"77a14160-3643-46fa-84d2-95c4b781b969","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":33,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"24a479db-e07d-4c33-b256-0cfcdffb05ce","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":33,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"1f38ffb0-330f-4923-9368-e4bded78ffeb","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":33,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"579f3408-6e67-49e2-b525-ba4587a0d759","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":33,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"2727601b-e37b-42b1-875b-30e200089d2b","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":33,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"cb95f2a6-c18c-4410-9cfb-e471c820e75f","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":33,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"16dc7c4d-51b8-4c5c-b6aa-c2617b01d646","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":33,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"f77e0ff7-edad-4949-9512-5ca0ef8926d6","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":33,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"6c6b8661-b048-41bf-9fe1-10b96af8ea0e","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":33,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"99c17f21-e19f-48da-a269-5596f10264aa","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":33,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"01abeb61-ba41-4304-b04d-02edd67e3e93","block_type":"box","text":"II-2","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3d1b7e48-3016-4a01-a975-8a1139b9aef8","block_type":"box","text":"NM1026U-5978945-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"111df838-6cd4-47d4-9542-a2a0bbc8bc5b","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":34,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"a92598a6-ba4e-4fce-9177-66eab9198c5c","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":34,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"16ce5ede-6563-46ba-9e40-86b5544d035f","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":34,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"b2e6e0ad-2770-4840-8019-dde0b09bfc76","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":34,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"24175a13-c660-4bc9-bc79-3610ce12f36d","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":34,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"5bfc76c9-d8e3-40e8-9fba-d1a879e71e2f","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":34,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"7c79b6c7-2983-4dfa-9a8f-f3bb0d89432a","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":34,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"c5c28a45-1038-4b2c-979f-3394c1a5841c","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":34,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"e8d1bb3a-0014-4423-8387-ce46a0dc82a8","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":34,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"92eb7406-a64b-48d8-ad47-e2c53c827afd","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":34,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"fca543af-7e50-4abe-94fc-261a682df108","block_type":"box","text":"Cash Management.","page_number":34,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"6daa572c-6de5-43f7-8d82-fe3a809ae2af","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":34,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"994c6251-bc54-4740-9ec5-6ad1378096f7","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":34,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"da21759b-b8f0-471c-aa8a-b193dc5b5642","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":34,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"8cf9d5ac-83fc-4292-bf11-15e0ae71dc0f","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":34,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"7c6a190b-85f4-4bd4-a08b-dc7c1be6b446","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":34,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"b328ed9c-5a08-44d6-b11f-3534a0eed64c","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":34,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"5a8f0e5b-59d8-44f3-90d6-e7ca1f4fdae8","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":34,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"6e0d179a-7807-4fab-8468-a4a3280edfd7","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":34,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"9ce26e10-4ef6-406b-ad4a-778716fe0c45","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":34,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"70d0fbc5-85e0-471a-8f1a-b5bebaad201e","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":34,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"b8c5b226-d0df-4e9b-80f0-f98ce88e50da","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":34,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"3c10a01e-ec4c-4d62-8484-05db448f490e","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":34,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"9a795283-2ca4-457d-a1e0-8463f6441679","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":34,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"1fb0a0e3-a82d-4b6c-96fd-9a12e7f4edd2","block_type":"box","text":"Collateralized Debt Obligations.","page_number":34,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"2e0eb157-90eb-48d0-85bd-2c390d8fba11","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":34,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"d56397c6-1628-4e78-b7ec-9219ecd55fb9","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":34,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"ba47b7e3-7481-4272-b386-4a408e52a64f","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":34,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"c76e4c50-9a52-4d5e-9bce-64db9728bead","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":34,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"57989981-2e29-453e-86b9-18d52fa85005","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":34,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"bbf15802-11c1-452e-8665-2922185c449d","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":34,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"b6ff726d-1862-4813-90d7-c8b57adfe39f","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":34,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"529983cd-25d6-4a99-bc6f-d50229b7ed4c","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":34,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"d726fa33-0d09-477b-9de6-8791ca7e47f6","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":34,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"3df46b24-b7bb-4a17-a2d4-5b9f3ef31397","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":34,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"203f845f-ad65-44c0-ba9f-5a2c19a3a96f","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":34,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"55d31064-6f92-4f7b-bac7-4b729c5da701","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":34,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"9e8c727e-4d62-4ad2-b30d-2fa0e8927228","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":34,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"049e5b3b-ab58-4783-9392-bab4846ff0c7","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":34,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"ef5e97ee-b621-4260-9d2a-3b405c6805f3","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":34,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"e5ba47db-db5a-459d-b72a-097273796536","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":34,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"b7817df8-6c5e-40a2-8735-f1f35e4933ed","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":34,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"d643b025-4963-4c2d-b805-0457c476efcd","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":34,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"2c21ba87-95a3-4df9-8a66-4333d8b1f54c","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":34,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"bdfe4e19-bf6e-4b99-bdcc-dd06a7a370f2","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":34,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"31377372-e4ab-4b56-855b-b53529109a1c","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":34,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"a5e42ba6-7b8f-479b-8a20-c0bed288658c","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":34,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"50334fe7-5cc6-4502-86b1-a34ce6da1128","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":34,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"e4d043bf-a968-4c95-b1a0-7b958e0d0fbb","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":34,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"c525c4c4-e9ff-4da7-b13b-4ce7c6f65d85","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":34,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"11cfafe4-3d00-4151-82d7-b0f824b64180","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":34,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"8f9f575b-9fa4-444b-83e9-68d413add53f","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":34,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"66ea6fe9-e4fc-40c5-8327-145bc119c699","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":34,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"250f2f78-a57a-4999-8049-38881782e7c5","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":34,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"165082cd-a3ec-4d34-9cbc-25d14fbdff15","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":34,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"83a06205-960e-4d9a-b87c-3890591ceae9","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":34,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"db9df946-4bb2-42bb-bf42-b1024f6a2132","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":34,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"6dfdae79-151e-4ba3-a861-56e9f4d6c1bc","block_type":"box","text":"II-3","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"224d1ac5-faad-4885-a419-ed8fafa058b7","block_type":"box","text":"NM1026U-5978945-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"56932b10-c16b-4d74-b413-871977827541","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":35,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"abe1b682-0921-469f-b848-60028b559256","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":35,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"a04d1329-4234-43f3-96a4-e0da290db058","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":35,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"630c8aa9-b465-4848-8bad-ec44806c18f6","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":35,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"c2d1534a-53d0-4866-9271-28103ac97107","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":35,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"833fc1a4-33b0-4e20-9159-95d6b818784b","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":35,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"cd280b6d-efb9-4ddd-a97a-5a1ec114978b","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":35,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"fa16d8c9-2cad-41ca-94e1-f2813bd117ae","block_type":"box","text":"Commercial Paper.","page_number":35,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"24f56620-d4db-4fd1-bbdf-30e4acefcc1a","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":35,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"9cb3a83c-4a6a-42d6-b587-efeb2f600e03","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":35,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"2f598c0c-89c5-4352-868f-28d546c362d0","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":35,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"c29b39f6-c83d-46c7-98a2-e7830c7db381","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":35,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"4ce3bdd2-841a-4293-8eeb-0a33cb09311c","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":35,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"6ec00f26-8905-439a-9870-e068cb4dfab7","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":35,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"2d2d08e7-ac1b-4084-8b11-a6dc192d3eec","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":35,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"3e0fef54-d24b-43f3-805d-1aa2d9da270d","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":35,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"790aaf0d-cd58-4b91-951f-c967909f4ac7","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":35,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"03a92216-099c-4406-8783-e1926595980f","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":35,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"29af9207-1eaa-4b1a-9255-deb706853730","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":35,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"ba1ab977-e5ca-41fe-85a0-8a4b74fa8ad3","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":35,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"744fd3c5-6313-436e-9dad-45e3202cfcd6","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":35,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"cb52700c-b17b-4681-b003-7a9c3da51517","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":35,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"29a9d319-0ea9-4b6f-892d-2d434e8d8945","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":35,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"1536d637-7428-4e4a-8ba2-796574b6c90f","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":35,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"c3b3d202-22af-4711-99ad-79f6fb759497","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":35,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"c8ee0e38-6b55-4ad8-a507-d62c4f68d9d0","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":35,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"21220f9f-ce2b-4041-a1a9-6d63a64baf8e","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":35,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"b9c597ca-2586-4154-81e3-93cae2d42100","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":35,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"5cd3a595-a912-4dd0-96a0-81e0b8d6f8d5","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":35,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"b84ca9f7-3ed1-46c8-ac54-e1376fb56268","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":35,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"a0beb016-6314-4160-bd8e-dccef444f458","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":35,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"18a1ef60-9a7a-49ea-861f-4cf1edc353f2","block_type":"box","text":"variable.","page_number":35,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"54ce10e8-f9a7-4f67-99a7-b32d17c73ecf","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":35,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"c5890331-7640-4144-a979-a1c5fbe359f9","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":35,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"bbaa047a-8382-44c5-a4bc-693b75b44e08","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":35,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"ed7c2c14-7515-4166-aef2-30d9e0046d5e","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":35,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"f5872ad9-7e04-4266-96ea-49752c45e106","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":35,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b6367788-f580-448a-ba4c-7783ce07c274","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":35,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"f1d7b7d2-8c1b-4b81-b07c-616e240ece8e","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":35,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"2626168f-7354-4e55-8cfe-5d52e7f725a8","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":35,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"70b240cd-984e-4471-9078-2530a78a96a7","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":35,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"8723044f-4de3-4d00-8165-7a5bf4b66320","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":35,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"e4db7490-fcb9-45ee-a4c8-08a4b70d82aa","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":35,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"a0b62408-ba71-4473-9421-aef86126a636","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":35,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"51b6dd82-0a01-46be-a755-98aaa8cdb17d","block_type":"box","text":"correlation with stocks and bonds.","page_number":35,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"284c7154-525f-4cb6-8cbd-b018165965ac","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":35,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"9ae267d3-d61f-4b06-8419-28d8663ccf3f","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":35,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"07443f2c-20c7-41b3-8ef0-0dcb02aeb655","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":35,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"7225d7c7-ebb6-4792-be8f-a0d93cde21fb","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":35,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"ce89c167-381e-4e4a-a723-a6fb434b8cf0","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":35,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"e9ca827b-7ede-42ac-9fe5-d93548ff110b","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":35,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"599b8096-619e-43d4-945b-76f2953a511a","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":35,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"86dcc710-a810-433f-b19d-780d3616a885","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":35,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"0870c82d-b701-4aa6-84fb-986cccb1e22d","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":35,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"576d9700-344d-4c13-bce7-c873f24ab82b","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":35,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"1a515736-61b4-435f-bdea-e4bd4131464d","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":35,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"1fb785d1-cd1f-4186-a539-4d821135e464","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":35,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"3fc98f93-0735-413f-b853-beb49c205c24","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":35,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"4007ca15-dc77-4c67-8194-03e30448bcbc","block_type":"box","text":"II-4","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a4fca029-cd8a-43fc-9adb-d2c511ea170f","block_type":"box","text":"NM1026U-5978945-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"66d398b6-c328-488d-a18b-2f79eceaeae2","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":36,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"1680bdf4-2e65-4c5e-9882-7b560026f289","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":36,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"707c72ee-3cdb-4b31-932e-7edb7650194a","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":36,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"1c5e6b4e-b79f-4163-92dd-a1ed63bae286","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":36,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"7f3bfc96-da47-4945-a53d-345cb1650101","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":36,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"dd238719-94dc-4d31-905b-3c419f6206e3","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":36,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"ac3df9a8-a1a5-4a0a-a3f3-862d6bdb856a","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":36,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"733ca381-ee9d-4b98-b0f0-d1a7bc8765c4","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":36,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"7d146cca-1019-4146-8a46-fd24dd9d7c28","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":36,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"e90181d6-d8b9-4db4-b4e8-5687df62259c","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":36,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"68ca370a-ad72-4eeb-a0f3-129a1c05cde2","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":36,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"77f4c3d6-10ea-4c9d-a0f2-97016f6e69d2","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":36,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"f560cc9c-f4d7-4265-ad05-c499e61c3468","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":36,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"12355584-705f-49dc-ae2f-f430b7b3c5e8","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":36,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"fe6a5885-dbd9-41ad-929b-9812c3e5127d","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":36,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3b098ac8-ae49-4e16-ad03-c6e31640357f","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":36,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"f7142612-967b-4906-b2c5-e9102a84ecfe","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":36,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"fb940e70-3e2e-478d-8561-0574f758a205","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":36,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"07fd2fd7-37be-4fb9-b58c-ebfd14c45829","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":36,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"3ab70be9-b7fa-45ab-a67a-51ee2c790814","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":36,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"06e2cf9a-6ff3-49d1-aebb-ca4987b1eb1f","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":36,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"f08824e6-a5e9-4663-a4cb-eb45196ec94e","block_type":"box","text":"the Manager believes are relevant.","page_number":36,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"7c170d15-dcdb-4dba-aab8-03de3c3a440e","block_type":"box","text":"Limitations on Leverage.","page_number":36,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"9981ba8a-4002-436f-9a16-bd36b378653e","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":36,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"eeb2089e-8261-43f6-a90b-07799e8a9363","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":36,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"52541e91-8e50-414b-926b-d86cc7d28707","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":36,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"4b6ab347-2332-4aed-bb03-a284ff51589a","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":36,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"fd44025a-1f44-4966-ac8d-aa9a91fcce1d","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":36,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"1663ba2b-306c-4ce9-86d5-e578a3379bb4","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":36,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"8a99bca0-a5c5-445b-aba7-0bb6b4239488","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":36,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"f8e42518-b1df-4e35-9377-2787185c7a3f","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":36,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"e22a463f-5021-4961-8288-f33f5e2c3e8a","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":36,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"1d72556a-238f-46fb-9a42-4eefcda88fcf","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":36,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"99c74997-1914-4873-977c-87e6fec23fc9","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":36,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"36660382-9dcf-4ac6-8e5f-e69d693f4618","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":36,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"9db89a5e-cdc8-459f-b0bc-a8043e6b8983","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":36,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"0167cd49-eab1-40ae-a4cc-6654fe3218ac","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":36,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"11fad5e9-ad47-45e0-86d0-81365361d848","block_type":"box","text":"Counterpar ty Risk.","page_number":36,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"f390164d-15a9-402c-9b3a-a3830fc10747","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":36,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"574d093c-782d-4068-a741-35571a646bcd","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":36,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"73175b32-6d9d-451c-a9d7-01066b97ac09","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":36,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"1cfd70c4-f2aa-438b-b327-ef17cecb8357","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":36,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"19bcaca6-18d2-457d-bbfb-008114dde9ce","block_type":"box","text":"e.g.","page_number":36,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"9d234e41-6505-4011-8deb-8f67aac387f6","block_type":"box","text":",","page_number":36,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"626d038d-be3d-4f90-b9d5-8ff3eaea8f20","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":36,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"161d1b81-901c-4acf-936b-b90ba4761b62","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":36,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"6dfb07b9-4f84-4052-8753-280ad3086cae","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":36,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"b271e170-4ae5-45bf-a34a-83d9f20277ab","block_type":"box","text":"obligations under the structured note.","page_number":36,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"db5bc9b5-3687-4028-91c5-1d78ffd40a1a","block_type":"box","text":"Convertible Securities.","page_number":36,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"1b94f635-52a1-4a0c-ab65-737820d80e2d","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":36,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"fb118308-3115-449f-9cc8-92430ee0653b","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":36,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"46e490a5-7c6b-4580-9169-f0eb2da36ba0","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":36,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"ce532c30-c90e-432a-8361-5af9000dbb19","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":36,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"54502b0b-d887-4365-a2aa-3943d86ec23f","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":36,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"069b0667-e2dc-4f8c-bb50-ee19f5817988","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":36,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"195e96ff-2806-4921-90d9-b4a70a32e792","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":36,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"3fbf4fe5-25e4-4c54-aafc-6faf08c65ce5","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":36,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"8d0a0b73-217d-495d-8c69-07b83ae87e28","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":36,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"b13f0ed1-4406-423b-94e4-cf3b6ded5ef5","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":36,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"db903b80-4115-4ac9-a5b9-a804deae371c","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":36,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"8d43b01d-487c-40b6-8995-a3631b7ff6f8","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":36,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"526ce652-803b-438f-b77c-d2e0ed9ac941","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":36,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"3ec8d555-a903-4854-9649-8a9fdec05d15","block_type":"box","text":"II-5","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e66cb991-5d56-427d-8441-7b7d92627d02","block_type":"box","text":"NM1026U-5978945-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f486c58c-c039-442c-bf28-7def6d1a5b3b","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":37,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"0f0fbd28-78ca-409e-a3b8-c3132362e4cb","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":37,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"02cff403-f015-4e6a-b2b2-192ea7f75eb9","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":37,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"01e78a04-6a27-4e77-9054-740b30cab641","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":37,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"4d46bd10-8e46-4a40-8b81-9b2da2f72f67","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":37,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"a44c577e-8da0-4c09-82d6-9b4fcea24ed7","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":37,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"b6375d66-3ad6-4253-84ad-e7071cb4f5db","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":37,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"20da1dd9-0dc2-48af-be85-89a536288c11","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":37,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"d0bd12f3-f401-4059-82ca-ffeef00fd9f3","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":37,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"0473d53f-a140-4935-8f56-6163e84e24d1","block_type":"box","text":"things.","page_number":37,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"b4f0822f-0bb4-4e8e-9d89-ddd9a4f5df9b","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":37,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"ac7f781b-070c-40ea-bcf1-2f02c084de22","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":37,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"936fce85-76f5-4a13-a089-d738a28c0541","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":37,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"5faa79fa-d9ea-44a1-816c-e36bbd489747","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":37,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"318137ae-fe95-4a50-a9eb-947dceac6c76","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":37,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"32d91d58-e64c-486f-9f86-1867aff727e2","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":37,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"3dcb2cc2-bd06-4e7f-8659-6af0a38d8ce9","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":37,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"c1f0d3a7-1bd8-46e1-a053-0165d6df53a7","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":37,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"ce24adf0-72c0-4f98-946f-77f7576ac5c5","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":37,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"cd90b01c-b9f3-42f8-a5d9-b96e8cc0fddd","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":37,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"b6dab570-ef0a-4a63-a9bc-a118e517d7a7","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":37,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b71190cf-b0ca-4fda-8087-d7deb2ac4cc2","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":37,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"d0aa8f28-9f14-4722-84c6-1f185c0e17b2","block_type":"box","text":"i.e.","page_number":37,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"7da64fb0-2570-4a47-82e3-2ccf4f64bb65","block_type":"box","text":", strictly on the basis of its yield) is","page_number":37,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"622997eb-4380-42f7-ad9c-bc120d24411d","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":37,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"004480b9-eb7f-4129-a9bf-1eacc9c665d0","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":37,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"f8ad1404-aa46-4c0c-8443-63ba929f77ff","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":37,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"4dd72794-2c07-42d5-ae7e-909a914f30d7","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":37,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"95be71cf-9162-4e5a-a8ec-eef997ad42bb","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":37,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"3e111e23-42ec-4f79-908a-91ede8dc6aae","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":37,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"544d9298-c784-43e1-8080-68447bec55b4","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":37,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"12449308-e7e1-48a8-b5be-f30247d86e19","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":37,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"ebb81e3a-4115-4c7b-9a01-1f95e780de61","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":37,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"dd90ea17-fac5-4705-99e8-2711fac7bc4d","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":37,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"fa53ac5f-4a75-407e-aa5a-a32b5ae3f7ff","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":37,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"b0f5a19d-d952-4349-8f84-3e3c17102a7b","block_type":"box","text":"than the securities’ investment value.","page_number":37,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"87b77aad-8e5a-4394-a264-d3e24973a635","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":37,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"36d190ec-2321-4595-be2f-d8c59d4dbfa7","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":37,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"ed05430c-c219-4282-98e7-e92fd515af16","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":37,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"4eeeae34-8f12-4ee1-b2cd-d4bb0a1fb8e6","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":37,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"331441f8-143d-477b-81e7-2604713f1df6","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":37,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"d3033a1f-742a-4e5a-bd3b-005e34ca2fac","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":37,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"60e662c1-d0bf-4125-8681-4c8eccdd312b","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":37,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"35bc41a3-18a8-4871-a05e-98758b07f22d","block_type":"box","text":"security under certain circumstances.","page_number":37,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"43c48816-2f3b-400a-a925-544d30ee3d94","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":37,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"56166456-a4a6-4861-a1da-0f69bb0fbfbf","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":37,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"02c1c9fe-3845-4529-b41b-73085ef6aeee","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":37,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"f7a6654b-cd2c-4bdb-9971-1c78226d107d","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":37,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"6b28e111-d353-4fed-ac00-f360c4110a33","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":37,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"d0f67d2a-2d7f-4599-9858-d04737655660","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":37,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"4caafad8-b241-4130-974e-415764937647","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":37,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"fb56c6c6-6c86-445d-9319-2bf665e1f8be","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":37,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"dcd1095b-afe1-4090-bda1-1ccadbf42fe0","block_type":"box","text":"i.e.","page_number":37,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"5b9d7efa-a25d-4084-b4e4-1ed42ac57e26","block_type":"box","text":", fixed-income (“fixed","page_number":37,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"0aefae1a-f2de-4f90-8789-81948570da61","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":37,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"e3c7eeea-348e-4ce2-839f-c0a84f35c0dc","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":37,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"8f58ea9e-64a4-4b14-9c98-97aa90021d44","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":37,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"c19bb89b-1103-4444-bf83-a1c15f8b6bfe","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":37,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"c8167082-fad9-4744-9eb9-dad0a2fce0fe","block_type":"box","text":"II-6","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cda70878-2bfb-41da-9d77-1e510ffc5eb3","block_type":"box","text":"NM1026U-5978945-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"125ae7de-859e-4cec-8893-0be6667ced74","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":38,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"d233ae61-1851-4242-86d3-e0c3199fa55e","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":38,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"e2d3a2d0-22ab-45de-bc3d-31906d788871","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":38,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"a17d4458-1839-41d9-a3f3-1117358d1f07","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":38,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"1204e0a1-9877-47a3-88f5-0a2fd6143e30","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":38,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"305de786-f16c-4afb-b48d-3dc5070a6251","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":38,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"a5916d40-a3c6-410b-8602-cc2d3ba4a947","block_type":"box","text":"component.","page_number":38,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"37fa60b3-4ccb-4822-be97-f0e83dc934c1","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":38,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"c8d1e73e-bf99-4474-b35f-212458d54d4a","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":38,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"6f1b4ad7-19d1-4ce2-8e01-27f8f672edf6","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":38,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"d623ec78-6173-4dd1-ae03-719aab49ba39","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":38,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"54f21d49-36eb-4276-9f7b-9f2dece1cb99","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":38,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"bf7e02fa-ec52-4985-9e86-62814f123296","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":38,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"0b1108db-9710-4a18-b8a5-240f1ac4bd97","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":38,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"86ea51bc-2788-4554-bdbd-e4153a624901","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":38,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"94ee8083-9eae-4c0b-92fe-073fd2150422","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":38,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"300c8154-14e1-4b6e-9651-9e6a1f23219f","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":38,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"f263feab-9849-49c8-977c-65663583eee6","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":38,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"cbbe58c3-0875-4d51-be08-b3804a20e083","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":38,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"ce02f7ef-d1d9-4a0f-b89d-d3e700c89711","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":38,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"f6b71d27-7ddf-46be-ae57-dd70eaccd67d","block_type":"box","text":"favorable market conditions.","page_number":38,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"fe1d45a5-1a73-4820-9ad8-77272e084e67","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":38,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"e3867f51-eb66-4bda-b3e9-64296b73bd53","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":38,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"5129d6af-7864-48af-8df0-5f2e1d7e3314","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":38,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"3023ab95-eb39-4337-a8c8-1f6a18cf8b59","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":38,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"6f3f4d5e-2812-4ae6-afd3-3109bbbe06d5","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":38,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"435052a1-ccf3-4fac-85a6-a0a00365439a","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":38,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"c499828c-c817-49ec-99fe-74f5eb84c9d6","block_type":"box","text":"Corporate Loans.","page_number":38,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"584e06e5-71a4-4ee5-96e4-ed52a230cd49","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":38,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"045dca70-32b1-42ed-a995-d9a26047145f","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":38,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"e0b32d05-75bd-443f-901b-f36931d91886","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":38,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"6d943d96-a92f-468d-b9e9-2f7a71bf0de1","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":38,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"0d262cad-8d49-4ae1-b0a0-953353de91e9","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":38,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"3da949ff-1e10-4044-b1e0-906f9ad688de","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":38,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"f24bcd4a-0ede-47db-b330-de8fc18b7501","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":38,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"e234ed2e-1922-4fe4-9e9d-b9e077fdb8c3","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":38,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"cb1d9e10-417d-4beb-bc80-759beadcb077","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":38,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"eec4852c-823e-406e-9a6b-70e5b7af9fac","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":38,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"e97f999d-0ed0-4e6a-a0da-46f6cd5fcbcf","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":38,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"a23fe3ff-5688-40b5-ab75-9698f20a3db5","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":38,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"e06cbc0f-8c4e-45ef-844e-d07f170f3c4a","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":38,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"dc5a3313-f8f2-4241-a592-6c860abf2aa9","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":38,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"bf0f01f5-e361-405f-8949-a60f8dc8a8f2","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":38,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"159aba32-4e95-41b6-aaaa-bbec6132ec7d","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":38,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"251a6d40-35fe-444f-987a-f961aedec9cb","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":38,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"c55bd351-a6eb-4987-bcb2-08b6b8304e23","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":38,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"8e06056e-7df9-4ca6-8b94-a5202ca60447","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":38,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"95b506d3-2d08-470c-bc72-169102c92869","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":38,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"ac0dd213-b551-4773-979a-13e9d96b85d7","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":38,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"b0bf22de-0f26-413a-a151-acadc0aef541","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":38,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"ef20bcdc-e287-477a-b0ab-f2fe073d0a33","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":38,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"5498f6cd-5b7a-4b8f-b1ad-21e81304c76e","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":38,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"1087b6e1-a390-43db-a52a-fdfbd158b636","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":38,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"ee7b2796-7c15-406a-ae95-449198485a7c","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":38,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"f104526b-0809-4489-9bb5-3cf3860b5f03","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":38,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"f67e14d4-f864-4a6f-89b6-764b2a12a947","block_type":"box","text":"of the borrower.","page_number":38,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"80e37718-da75-434f-a849-fd44ba8f2515","block_type":"box","text":"II-7","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6efdaea3-6de9-420a-ae86-580b372b2ad0","block_type":"box","text":"NM1026U-5978945-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"07bbc818-283a-41f5-9318-68c62758cb54","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":39,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"a7827c91-2d9e-4bfa-92d4-40a2925f48b7","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":39,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"bde1e0b8-5814-47a2-8f50-701b63d04208","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":39,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"3a9496a7-708c-4ed8-af5f-8827da6dbd97","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":39,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"50d61600-004a-4d1b-9304-d02a6f9814f7","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":39,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"234708c9-a776-4dbe-8504-44187e7b03eb","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":39,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"756444d1-3bf9-480c-9394-a483a2046ebf","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":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"021d652d-6f38-42e1-a032-6376469e4b78","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":39,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"1dac0526-6ae7-4897-a213-7d2ee4dda31f","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":39,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"bb147451-024e-47cd-8c08-dad4693bf51f","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":39,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"8acf8090-dcf2-40d7-9d97-b92466e8fc9d","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":39,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"068f5f3c-4497-4a96-bbb4-893d08b6b81a","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":39,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"e7e2b9fd-d10f-4b4f-912b-9c0e4c71b1c4","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":39,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"d5f669e3-6627-4064-a0d9-67457db88da0","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":39,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"02eb9ddc-c8bf-46db-ab52-766c0f5e5a60","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":39,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"6bbf62d2-ce95-4019-9b39-38657e2f8b90","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":39,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"b1a0084a-1851-41e8-9bfa-40171722c211","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":39,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"42f5003f-2912-4661-8ae3-4a83e1ec482e","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":39,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"d3e1447f-931f-42be-9693-56df80b8919a","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":39,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"b69dbd30-87f2-4ca9-98ff-c2e8eec9861c","block_type":"box","text":"state law.","page_number":39,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"14d8cad7-bfd5-4928-8480-b68e48072d3e","block_type":"box","text":"Direct Lending.","page_number":39,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"a45c1cf7-c258-4e0b-a258-1e5e1b985d78","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":39,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"22f11ce6-e2f2-48e9-be7c-143aa99351fe","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":39,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"448c3567-8e4b-484a-8f6a-b9b94477f6d6","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":39,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"5b13880f-84df-45c6-a4f1-9f4e6a45f824","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":39,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"565b7ff3-e0b0-44ad-99b4-d9ee4fd2474d","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":39,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"268ac0f7-436d-4e40-a924-986410c48505","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":39,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"fc26e151-cfce-4c59-99d3-133beb66d8db","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":39,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"659f0b0c-70d7-4a51-8856-9308c6748df0","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":39,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"97c99bd5-c0a4-4c6b-8948-1ee90bb06ca0","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":39,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"897bbef3-0fd8-4df2-a42e-dbfb9f42ef53","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":39,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"4f882ad8-0182-45a4-884f-95bb7b53bae9","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":39,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"f3fb05d8-2bd8-49fa-a8a8-3ae36571bd05","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":39,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"01fb93c9-254e-4941-941b-eef44457db42","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":39,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"ee166f5e-708c-49d6-8b90-883d15356031","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":39,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"fe2101a3-33b2-4dd3-8643-506940166893","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":39,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"4ab9a3b8-3094-4869-9397-1fee39641c99","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":39,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"b5cb9d6c-3fbd-4589-855c-4832976530b2","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":39,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"9be81cba-f2fd-41c0-a5ce-c6bed9514366","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":39,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"ff83514f-6563-4e24-a4c7-8cc88187af3f","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":39,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"068cd822-721e-439e-b18d-bdc1845161d9","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":39,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"efff864e-ed2a-4643-83cd-0da3be80cb84","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":39,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"9d20d95d-f033-4c25-83a6-a73c53692944","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":39,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"5d181479-75de-437a-946f-1081890fe733","block_type":"box","text":"Credit Linked Securities.","page_number":39,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"487cc3ec-1ec1-442e-a364-a9157a3e3342","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":39,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"f02b9292-471d-43d1-b046-ec44fed31915","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":39,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"451a2d6a-8864-4551-a1ba-c195feb4b83a","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":39,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"325b130d-5dfe-40ef-a521-4b2aeddef611","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":39,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"f23a6a0d-a611-4b28-a45d-2a0a67b20980","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":39,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"da5c10ba-54c0-477e-96d3-d6b47292d89f","block_type":"box","text":"traditional income producing securities are not available.","page_number":39,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"28e8d7b9-835c-4a61-9e0b-39947b483da3","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":39,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"dadcbdd1-fb17-4537-a48f-0d0ce6173454","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":39,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"dd25f4e2-bbd1-42a1-a1cf-d36ccccccef6","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":39,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"6e2899a3-718a-493c-a4e3-f17bb18914de","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":39,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"4e7b717b-5e34-4433-91dd-41c9bc9e3849","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":39,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"12ba07b5-2a94-4797-ac81-26ae7878b21c","block_type":"box","text":"II-8","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"be05f702-ec12-441f-9af4-89b7877b5520","block_type":"box","text":"NM1026U-5978945-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c714201b-15c8-4f49-880d-6042a5e1ee5e","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":40,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"5f32e893-f0f8-4dfb-9ccc-f3e64d7b0025","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":40,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"c92e1c4b-ea73-4d49-9727-6bcec88378a1","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":40,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"013eb60d-ce42-480a-86fb-0cae4f71cc0a","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":40,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"42ac925d-60dd-4205-94f7-d915fe5f98a6","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":40,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"1454caf1-3dec-4e23-994b-a583a5b384c4","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":40,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"fdd99033-6ae2-49f8-bc80-b35b4c681da2","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":40,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"858c69a7-bfa4-4741-a57f-2759668b84e4","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":40,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"0224a68b-477f-445b-a718-1af33f10d84a","block_type":"box","text":"investments.","page_number":40,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"37bc4f6a-034b-40b7-83da-5837091c04b9","block_type":"box","text":"Debt Securities.","page_number":40,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"118cb6f4-0b15-4a19-b0ab-c8028a3cdcec","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":40,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"fc441583-c1a0-4aec-a1cb-6f322e6b55f5","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":40,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"5c4b6c8c-363a-4b2d-8456-47203d3289fc","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":40,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"91ee9f33-eebe-4b15-911a-54f08d55c6d9","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"23c178ba-2e39-4bf5-ab33-1a86d6f821be","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":40,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"4bd89699-3e09-4f0c-a1bc-e15c6a6c0a55","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":40,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"7aa513a6-89c5-4ab5-9d2f-28096f650695","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":40,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"f027b7e3-3917-4721-94d6-f8b740746b59","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":40,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"951a7577-7757-49ad-9c34-15407546d969","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":40,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"2358fa2a-9f5c-4e82-9e3d-03d3c0e7814d","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":40,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"66c601b6-b58b-4188-92ad-a837b1ebdeaf","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":40,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"dcf10b07-20f2-4852-bc6d-099a7fa38276","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":40,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"adb35eb1-b0f8-4e58-93cc-87acb4891637","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":40,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"178e9bb4-866d-450b-b930-7da78ef77f31","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":40,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"bae60f8c-d9db-4d7f-a467-be1a9bb01cbc","block_type":"box","text":"lose value. This is known as extension risk.","page_number":40,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"c430affa-37d8-45da-9d15-c7f9398bd411","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":40,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"86db1023-2f51-4706-bc1c-a8c7b5d6c8dd","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":40,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"d9e97fec-5443-4511-b35e-728b424fab0d","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":40,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"148d59c1-f1d5-4fa0-94c0-1dcda65c4fa0","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":40,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"3ccdd05e-23e4-45fa-8cec-5c61cc5e0b49","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":40,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"63e217e6-8462-4474-9ac1-d5a8b0043dab","block_type":"box","text":"Floating and Variable Rate Securities","page_number":40,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"4b5b1e22-c202-4874-9351-907d1865bc85","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":40,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"989a4807-26dc-45c8-9db1-b1dc488478e9","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":40,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"ed471d83-4b65-4605-91af-74ced116f77d","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":40,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"bac0c197-1447-4b8c-9933-9f7d7aeb6c47","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":40,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"fe77ab98-2d10-4848-9815-6791afb149ac","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":40,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"243487e9-f21c-4b75-aca8-0e9aeb7caafd","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":40,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"6d0d000d-bef3-48b0-981b-687229677c41","block_type":"box","text":"market interest rates.","page_number":40,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"545deb3e-8aed-469b-a774-69782a08cdfe","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":40,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"26312ec3-4174-485b-8e52-ac0cd337c074","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":40,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"a0038df4-ae55-4b7b-b947-21ccb6881068","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":40,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"6cb15714-5622-46d7-bfd0-aae535eba4c3","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":40,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"cc5d6b76-4acc-4471-8a7b-500880aef959","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":40,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"fcef6adc-2048-4c69-8386-349a1a8c36a6","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":40,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"8b483e4b-24eb-4681-8cda-849421de5bdf","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":40,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"49b154ec-31e9-41b0-b427-5d456697bf7f","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":40,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"cc8803a2-36e1-4fd5-8171-d534a2af66d1","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":40,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"5f8d36f6-f2ea-4962-a473-6e14b05fd5d9","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":40,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"d83839b5-a997-439d-a7da-81fd063af661","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":40,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"f3d0bf85-e85e-4bd4-8fcf-4b955d6e5413","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":40,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"1678c20a-e854-443a-9f3e-77550e278271","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":40,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"03cd6192-7408-4ff4-95d4-3d6e3ab93268","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":40,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"b692947f-d7d2-4805-bf1b-98934a556ae7","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":40,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"a97313e5-db10-4338-823b-b4f4be0d06da","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":40,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"bf14e7fc-ee0c-4831-a9c6-5e012a6b815b","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":40,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"d7676573-61e8-482b-8323-82a854b94e90","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":40,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"558d4198-8283-4260-bc16-994a46bb50d9","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":40,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"a54580b6-401d-4d75-970f-3fd6569a2ecc","block_type":"box","text":"II-9","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"662701de-97a3-4771-84f0-233f770c2fc8","block_type":"box","text":"NM1026U-5978945-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2a6fa1a2-38fc-4bcf-a80f-6610adc016e9","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":41,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"29d684ab-758d-4d4d-9f5b-08ab03af67e8","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":41,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"26d103a6-53b0-435a-b948-25c2df6c9c4b","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":41,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"8f059137-5dfa-46f9-89f4-b142fa60aad1","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":41,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"ae3c854d-c75a-4d2f-97f6-7f1e890b0d75","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":41,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"737577da-6a71-4a29-a489-1c306f5b5f88","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":41,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"17d2594c-6f1b-43e3-884c-0788ae814615","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":41,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"e1f5d4cb-98b3-4b61-bb2b-56fdc35764c2","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":41,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"5cc43eaf-3589-401b-8548-135262c76c6d","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":41,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"e90cc601-9200-4aa7-9169-81826a6583d9","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":41,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"7c2e9abd-bd25-4ddd-9f78-492b38f08102","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":41,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"78272053-df09-45e0-8e7a-c8f776765cf0","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":41,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"0b5eabdd-c5c8-41f5-a3c2-0ff275d8cfe3","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":41,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"bb485f18-efc7-431e-b1b9-dfbf6b302dd1","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":41,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"646a8be3-91fe-4b8f-b1e2-d3d8633e3541","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":41,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"803e08b8-370a-45e5-b447-a144efbdbdbe","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":41,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"1413adfb-7840-4752-bd04-75c52bb484cc","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":41,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"eb8f2804-2577-4d3a-9fb0-3fa4efdb0626","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":41,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"32b16aaf-8ea3-4e53-9bb2-31193bbee1c1","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":41,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"23debb0f-fd50-44d3-8a23-cf04b7ea6ce5","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":41,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"52ba5c01-b6e5-4ad3-acab-582dba646796","block_type":"box","text":"United States.","page_number":41,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"8035d7ba-510c-4aa4-bd59-7687df3a31d5","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":41,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"c4d362f9-3420-495d-b3ab-f8ff684fbc57","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":41,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"3db48190-0cfd-4fa3-b634-cf9e4754480f","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":41,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"c2da120b-4b17-4202-830d-649f24b899fb","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":41,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"c23901cb-aba5-4669-ac06-5137ddd37f13","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":41,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"3ccc34c6-b2c0-4ec2-b019-3c491ff60f01","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":41,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"9c02bce8-cdd3-4fe0-81c5-092fb6fafe33","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":41,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"be9a8494-2445-4391-9863-0bca83efb4a0","block_type":"box","text":"i.e.","page_number":41,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"b70d4e8a-be30-4b04-af31-62cca9545049","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":41,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"392d6e1e-6b46-4c5a-ba3d-b65129ca3051","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":41,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"aff64bf7-4244-4b76-8cba-6343e1edced4","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":41,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a375d2ef-9b55-4cda-bc89-b62fb97010f2","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":41,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"6c8a4061-de90-40eb-b468-406eb0397376","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":41,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"ca07bbb5-75e1-494f-b5b4-d5b48dff82b2","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":41,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"d3cab9a7-3b51-4b37-a6da-3399a1a79aef","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":41,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"60e7687e-56bc-4893-ad2f-5e62f987fa1e","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":41,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"794633fd-13ea-45cd-b5bb-fb6fc1d42576","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":41,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"6ea7dbb6-65d3-47df-80cc-fe5fef9b2a34","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":41,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"3abd47f9-66c3-40ca-9621-b94ab10af9b6","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":41,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"55541c4d-da70-47e9-99c8-f1d93ed7894e","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":41,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"0810c957-af0b-4a50-a5f5-d45872e958a2","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":41,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"9388e165-80f8-4de9-92ec-a0ba96c00e0a","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":41,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"cf3a8ee8-06a1-4dac-b33e-66dcdb3cd6c4","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":41,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"86dbe268-6798-4871-959f-c4b0d72b079a","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":41,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"9c8e1b17-8027-4741-957c-7d682cd59ade","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":41,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"73de3fb9-5a0c-4a71-a92c-27b45de64afe","block_type":"box","text":"risk than higher rated securities.","page_number":41,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"5caa7e92-83a6-4fcf-822d-75c0ce065717","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":41,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"d781d549-ee3d-4a08-933e-64b5a7cc818c","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"d2de62df-9581-48bc-870c-a4759c667eb4","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":41,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"39e2eea2-6c8d-4453-9a54-1ab3e1b84ae9","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":41,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"ced7edbd-fadf-49be-ae2c-e873e168ae0f","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":41,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"f27ca1df-7d20-42d9-b244-6e6d740a0dce","block_type":"box","text":"unavailability of additional financing.","page_number":41,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"6b776893-0a8d-49b1-9388-05c50bdd5df2","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"08671a3e-1770-44d6-b7d5-1008554f11ea","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":41,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"5a868500-b91b-4c2f-acfa-7107a97e8037","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":41,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"956eeeef-8c97-4e4f-aca0-416391a1094b","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":41,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"a70e1ac7-a546-4767-bbef-83ef3c1f1e3a","block_type":"box","text":"II-10","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e60c523f-ba28-4032-be79-29663e65017e","block_type":"box","text":"NM1026U-5978945-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e72ea549-4b64-45dd-9b5a-ce34adf5a24e","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":42,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"bd0d2455-dabe-42c3-b269-6008279f919d","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":42,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"36e92426-0b4f-4d76-a9d1-346c31d743e9","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"caf8e99b-b51e-4525-ab49-d1fa4b31dad2","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":42,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"4c2cdf78-afe4-485d-a4fd-bb2563d0da2c","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":42,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"736b4be0-48f5-456c-bbfb-cce131da9d83","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":42,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"777e2e5f-650e-41ae-ba07-cacc3742560d","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":42,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"315be37b-3317-4ae2-bdba-63d9d6a81d98","block_type":"box","text":"investors in higher rated securities.","page_number":42,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"63b2ecb7-9473-41a7-b039-35a3ad5c21bf","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"ed3f22e8-873d-4338-9031-72a69123819a","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":42,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"de72670c-29df-43f9-8af3-f2f9b54b262d","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":42,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"1db4f1fe-b8ed-44ac-8b50-09ef06d29c16","block_type":"box","text":"lower yields and may lose income.","page_number":42,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"e5f8e656-e28b-4711-8752-e0899f5bd916","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"5edb9f4c-8d75-49b9-8acb-e0320d364da7","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":42,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"574166c4-698e-4ff8-a361-8be5b2ed0725","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":42,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"d154e840-f009-4516-a60b-2cc338a58279","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"665fef28-edb1-4def-8b6a-308b44932a86","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":42,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"d1b73aaf-d65a-46b4-beaf-4081fc08c3f0","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":42,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"e841f61a-289f-4ccc-b774-d46ff3cc95a2","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":42,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"c79683f8-caac-4937-8ddb-45d6357313a1","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":42,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"26f9c524-5675-4f94-a534-af9054aee362","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":42,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"df8b901e-24ec-4623-8cd5-a66f5f0966eb","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":42,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"a23ed7b7-3cde-4dff-9de9-3c05f223d012","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":42,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"94779276-6302-430a-9747-dab52595f9dd","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"e8486748-6163-485b-9ba2-138b29f553af","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":42,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"5da44c85-b0b2-4802-b305-1e7c0ee98fcd","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":42,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"4ebef711-f3d9-461c-b5fa-542ed0d96ffe","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":42,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"cfa9f457-49b7-440f-94ac-ad21384742b0","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":42,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"4d868473-ec9e-4bac-929c-54449f2b6121","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":42,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"f06d2d8d-6411-4d81-bad0-37802852b6c8","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":42,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"f971cbd0-ce83-4aa4-9f3d-a501daba1f12","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":42,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"e92f8fa8-f6ac-447d-b17c-fece7126b0e7","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":42,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"3d8d9241-9849-4cef-b135-a0c9421276fc","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":42,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"d2a4a2e8-386a-4e92-8f2b-1a4b54fe31a8","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":42,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"0609267a-340e-4277-8158-75c01f9b82f8","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":42,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"7afd3bb3-a0e5-48db-82df-321407048bcc","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":42,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"7abf3409-3ab8-4e5b-94b1-30a1a717d34d","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":42,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"ae3d6834-a48a-471a-918c-8c34a9304402","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":42,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"b476dec8-96a2-4928-9c66-85b9839e79fc","block_type":"box","text":"role in determining such valuations.","page_number":42,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"7b93545d-8a03-48a0-a44b-17b0390ade91","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"bc8aae30-5d99-4b99-aa52-3b8b2bf07fb2","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":42,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"258209d2-123a-49fe-9fcc-e2794f9b7ede","block_type":"box","text":"a defaulting issuer.","page_number":42,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"c195df98-57e4-4859-aa17-28b16412d654","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"c00d52cf-4eb5-4d88-9dee-6c6120ba29e2","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":42,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"1f39baf7-78cf-4127-96ac-1d669533c593","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":42,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"71cb7f12-fd76-4180-9c74-e375ae08bc80","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":42,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"0d26a0a7-ec89-4846-9888-d76dd894204f","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":42,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"1163c3ca-879a-4475-8fe6-4ecb15491ef6","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":42,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"f1240ee0-d381-42b7-b2e5-198cd14f20d0","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":42,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"a2779df7-57d9-4090-9035-afc25ea2ba94","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":42,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"b45257a1-e559-4357-97a0-50add2627c47","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":42,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"6344de57-a3ee-4acf-bebd-429fbaf9f931","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"bdae945d-b72c-473a-81d4-b38ea98937f7","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":42,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"3e964f93-1aff-4449-871e-c9ba5ae9b22b","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":42,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"663aa941-d065-45a9-a1e0-daed609f5550","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":42,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3cd302e1-595c-49ec-91e2-85c721b57ea0","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":42,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"d43c1490-ba6c-47c7-929b-e1fa2e772e08","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":42,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"a1285d93-2f79-426e-8147-bd53081e4402","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":42,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"6cb80760-effc-495c-9102-754445f261e7","block_type":"box","text":"higher-rated securities.","page_number":42,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"a90eeadb-689f-4f9e-ae95-f41aba4e3863","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":42,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"bb7b6e88-bda6-484e-83f0-5413d4d59288","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":42,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"be0b0fad-5954-4c7e-b668-8599f62ee655","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":42,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"235f8f2f-5ea1-4b38-b5d3-f5f1f0ca1cb8","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":42,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"bb53d3fb-95a3-405b-ba8e-57519f934710","block_type":"box","text":"II-11","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba47e43d-e188-4f4c-8efa-60a76a197860","block_type":"box","text":"NM1026U-5978945-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ba9f7eb9-acb2-4599-92bd-8ad168e86683","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":43,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"5ac5222d-b35e-40b2-b0e3-32aacc3c186c","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":43,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"869e58b3-2914-4f27-b8a1-42caf605bfcf","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":43,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"e4c21534-c7c2-4461-af51-2940089d2f95","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":43,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"3f583ef8-afe6-425b-a0d2-71e2c085027f","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":43,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"157ab6c4-c8f3-4d02-a7b2-f44568812ae4","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":43,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"bc48c2ae-e6a3-47a8-8b21-72019290e2a4","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":43,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"bd69007d-f354-4ff4-b52b-83fa048de271","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":43,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"dbe103b2-3c08-4d50-8d30-11ba0c670974","block_type":"box","text":"Mezzanine Investments.","page_number":43,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"c10eb0f1-db19-4a0b-a8b7-c624e1e8654b","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":43,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"62e13341-e0e3-4cb6-beeb-8a93803017c4","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":43,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"d29adbe5-96cf-460c-b2f8-a1b952546ffc","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":43,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"8ac1ebc0-122e-46d6-b1e9-8b31432a4cbf","block_type":"box","text":"e.g.","page_number":43,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"408a2e4b-aa13-478b-a386-b5a831fafe4e","block_type":"box","text":", with","page_number":43,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"cdd374ea-dd4e-4680-8231-43d4364eadfa","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":43,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"e04109bf-dd29-4255-83f7-2021e58f7f1e","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":43,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"3d121fed-ea42-409e-9f21-518dd7a0aa8a","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":43,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"c1cb5fb1-bdce-4788-8a66-55c35c2275d9","block_type":"box","text":"other obligations of the issuer.","page_number":43,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"f1d9a981-b9f0-45b2-9c47-5280aee0670e","block_type":"box","text":"Pay-in-kind Bonds.","page_number":43,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"7c885500-bc13-4136-bc3a-14e48ff49560","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":43,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"cca35546-32f8-45de-b4a4-728a6560c2b3","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":43,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"5d819783-d83d-4add-bc56-b4f16278479f","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":43,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"cedab335-8c2b-4220-8939-32d55bfc39c2","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":43,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"1fd0f7f7-5d08-44ff-959e-6e29f353cd2f","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":43,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"23e5fa3a-7a75-4fe2-bd64-52e6122018c4","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":43,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"0cddff92-de1e-4a04-8708-ea5c3a1f4240","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":43,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"c4db9d64-7e69-4e37-9161-7e5c12d1b412","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":43,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"514910d6-f748-424d-a7c8-67d2e944965b","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":43,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"18873027-109f-4270-ae41-97f834f87edb","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":43,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"6cc8f1ac-bbb6-4de8-abd1-b902850b4aad","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":43,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"be736a6d-09f9-4a5e-a676-54fb6a19bd35","block_type":"box","text":"Supranational Entities.","page_number":43,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"fbb87b08-0877-4a46-ad52-3c0574464ea4","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":43,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"77b82957-26f7-4923-a3d1-0ac97fe76e9e","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":43,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"fbb438b4-da5a-4f31-aa03-fe1ee78d9b43","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":43,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"489968b2-d0b8-4187-bf02-ef0eb00a556e","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":43,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"6923ec52-a0f6-4c7b-8110-f07c07607664","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":43,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"bb1a34f6-bd26-4e9e-b42f-c7e546ee132a","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":43,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"ed2977c7-8d75-438f-b19a-f79939215263","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":43,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"81116f2c-59ce-4645-a78a-8d30ad36716a","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":43,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"a78ddc2e-01de-40a2-91cc-9299e5af9200","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":43,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"a5c8e376-607c-44fd-89b2-9f1a63d2aa0e","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":43,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"7e4a07c6-5b51-4e16-9051-8f4d11190e37","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":43,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"bd39a05b-f169-4c27-a70a-68873dc51107","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":43,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"8e436424-fea8-4508-9445-5f1cf4ecb139","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":43,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"ea6933c4-3724-4f1b-becc-5c73fc8472d2","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":43,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"6ef9cf01-2d22-4a3f-9ad6-831de4b1b7a0","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":43,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"1280ac17-3d43-45c6-bcb8-8f168fc7fb71","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":43,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"8c2bce61-f77a-451e-a6ad-ae89140861b8","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":43,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"772cb48e-c8f5-41d8-81c1-af64ce1f2df6","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":43,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"fa20e564-4df5-45fe-8f1f-fa19d2ae83a0","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":43,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"796b69ee-9c09-4816-8b49-17e7e71a2f7f","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":43,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"f5855cae-b451-444d-a364-ab9d5f284ae3","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":43,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"0119ae97-bfe2-4675-958d-fb5546b27e54","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":43,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"120e01d6-35bb-49c3-a715-4cccd3ee2413","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":43,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"7c183e18-2877-4017-a6f5-9fceaf868875","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":43,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"1424808e-211a-4749-b376-9f4ba5b56019","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":43,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"5d836d2f-a94f-428e-a362-12c2b8133a27","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":43,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"a0dbbfd0-2aad-4051-a671-645d9064e675","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":43,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"f3d27359-c8d2-46d8-a50a-ed4d5c5044ae","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":43,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"6d1b2b31-51c1-4428-b557-e1aa4f88e666","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":43,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"adbfbcd7-4209-4e04-ac30-6ca14ba961c8","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":43,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"de4fbdcd-0a43-4b04-8791-a95ba6d345db","block_type":"box","text":"II-12","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fbda0567-18eb-4706-befd-0fbf0002899d","block_type":"box","text":"NM1026U-5978945-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"23c0f8e3-cd87-4309-a34d-767b20823a24","block_type":"box","text":"Derivatives.","page_number":44,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"6d08d86b-01fd-440a-b8b1-4e6c21374158","block_type":"box","text":"General.","page_number":44,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"ad639c2c-9e8e-434f-b4ca-8b1ecd216d52","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":44,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"416de14a-9f25-41b9-a344-a99e6fd97010","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":44,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"c1f8772f-9bef-467e-9071-c8c3d7b2dc9c","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":44,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"faf7a714-3a43-4d43-abd5-66059b4031cd","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":44,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"c659f975-a993-4b13-9872-013c65e1a8ab","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":44,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"f6ed496c-166f-46b4-af75-628b828b6101","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":44,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"5e8e7d85-00bc-47fd-a61d-341956d1be83","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":44,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"5afea659-52bb-4200-8ee3-6d501412ee83","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":44,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"f8e20350-61d0-4d0b-97a9-9bece9e7355d","block_type":"box","text":"i.e.","page_number":44,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"6fef1cfc-978a-454d-8940-bb808a98e438","block_type":"box","text":", the payment","page_number":44,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"a888ee40-c804-4494-950e-4d07b4a30668","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":44,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"07ae4589-3893-4e7f-a3fb-dd4fff8861df","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":44,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"bf5e3736-d1d9-48ba-b583-f25d4faed489","block_type":"box","text":"Hedging.","page_number":44,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"00a6588a-b171-4347-a35c-dceb2b1cd3b7","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":44,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"68ca4bda-2dc2-402b-bdff-063daf38a986","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":44,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"49b92fcd-e746-4af2-b3a1-4d7c1de43481","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":44,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"fa547fca-be3d-4d7f-8148-ab6ac9806b50","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":44,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"8cb48259-544c-4089-88aa-2847e13327eb","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":44,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"a9bfec2c-1a1e-4885-be09-22c84eb4fa47","block_type":"box","text":"correlation risk,","page_number":44,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"96ca8c40-201c-415c-bd5f-401cb2fbb7e2","block_type":"box","text":"i.e.","page_number":44,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"bdb40d66-9a76-4707-a097-7f81e076cbfc","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":44,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"f4c629fd-3c49-4aa2-8ce5-4aac88aa1bc5","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":44,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"1b00b6cd-b1ef-4665-a5a4-bc3f46692137","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":44,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"6d6ebf00-8671-4e06-a684-a34714bda63a","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":44,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"e1e55c48-c608-4b99-b3ce-2b26aee89193","block_type":"box","text":"Speculation.","page_number":44,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"1c35d768-fc81-437a-b9bc-e5d7bb15f911","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":44,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"3fdc0962-0e8f-4936-9a82-786bdb1a84fa","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":44,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"2ef62386-dc4d-4bc1-a36e-bc36ba54e639","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":44,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"d3995321-cc2d-4fc2-9c3b-eea4038e04a5","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":44,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"215540c2-27ee-478d-bc14-0e8828eb443a","block_type":"box","text":"in certain cases may be unlimited.","page_number":44,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"f1daa885-5f00-4cbd-97bd-125c3325c2a9","block_type":"box","text":"Regulation of Derivatives.","page_number":44,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"111c472a-be98-4aad-95ea-ae96d4657da3","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":44,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"4246b7c5-7393-4553-81dd-702fe31102f4","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":44,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"41c01cf3-ecf3-420c-afe6-e74852a176a4","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":44,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"98d5280a-bf93-466e-bbb3-2634e1dbd458","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":44,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"a0a4d79c-3875-4b77-90fd-2567709420f5","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":44,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"183e09ee-119a-46a9-bc1a-a8103dbca9c3","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":44,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"647aee6a-bd8f-4c31-8d6d-a10273a8f3f8","block_type":"box","text":"coverage”).","page_number":44,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"7a1b6c99-4402-4223-b0b7-474b73e9f835","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":44,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"95880fe7-9f68-4841-b3f5-452122c64bc0","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":44,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"be5303de-61e4-42c7-9e2a-4a0144e87609","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":44,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"29370acd-50a0-4c93-b31c-7d5750e31e2b","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":44,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"ab2e645a-7c6e-4552-90c4-0f41e59cf45e","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":44,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"f9b18f22-3211-46f3-a7ae-38bed2e8edd2","block_type":"box","text":"financing transactions (","page_number":44,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"c948f82c-a3de-4ef9-ad1b-f46f6e9b8cf5","block_type":"box","text":"e.g.","page_number":44,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"6e5585df-4d13-4d3b-96f6-358be9fcbb0c","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":44,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"fbb20c10-05b7-473c-923f-b4105f07030b","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":44,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"9331fe29-8fbe-423a-91f1-5e51189bdbb9","block_type":"box","text":"securities (","page_number":44,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"063cc10e-b79f-4562-bec4-bea88aedf437","block_type":"box","text":"e.g.","page_number":44,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"eabc3832-b934-42f3-9da5-7f29594da2d9","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":44,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"6d398c99-1cc6-4f38-83cc-4e48e00f1f0a","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":44,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"d2a810d9-0e9a-4443-839e-6ce7e8b9accc","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":44,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"5a5785ed-7e44-43d5-847f-6350c1259c46","block_type":"box","text":"Commitments”).","page_number":44,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"9a1eee6b-28cc-4807-be5e-99dccfdab860","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":44,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"c518722b-1f83-41dd-a4ce-931d31e74e19","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":44,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"1df1df3b-61eb-4410-99a3-3660311efb4e","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":44,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"919401ba-1547-4d47-a02b-7ddf6242154a","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":44,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"3ccf329d-3bd8-4f2a-8d29-33d900f83675","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":44,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"58977a22-291c-4373-86f4-cef1c234862e","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":44,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"b4e6a048-55ca-4893-a46d-4711e4a24d16","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":44,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"3d5a2aec-c350-45ee-8310-27211c06cdd2","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":44,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"f87e8bae-9945-4479-8a44-3fb019cc43ea","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":44,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"223f7d21-1150-4bf7-8309-036e6f950f5d","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":44,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"8af97d01-2bc7-4896-97cf-3f19aa0b2293","block_type":"box","text":"II-13","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d207a4b-5b9e-48aa-8434-e332a6c4aeb9","block_type":"box","text":"NM1026U-5978945-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"94f9d780-fab1-4faa-8ae5-a095113c669d","block_type":"box","text":"Dodd-Frank Regulations.","page_number":45,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"7bc207ca-a312-4e57-8a99-63732321964e","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":45,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"78507485-a51d-466c-8c7b-0f8b08ac3758","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":45,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"20dff75b-ee05-4808-94d5-74e68c27b52d","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":45,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"21ec1735-594f-4c85-bcf5-196a73973ae4","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":45,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"fb640f12-346f-4db9-9b3d-e6f48c8b6f97","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":45,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"27da5a7e-6394-41c7-81d8-cfaf85b6c7b7","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":45,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"2de699f6-eeb8-42f8-8009-c70771a0dc95","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":45,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"929380f6-2743-4f22-a2d9-a360474600bc","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":45,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"5c923d08-d2d6-4bac-9898-d917f9e0afc8","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":45,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"0b16fe20-3e8f-4aad-b145-8d57583578b7","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":45,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"d8ecc974-dc04-4b5c-a1c6-615bb180d31e","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":45,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"a3405ce8-cb1b-49b1-8315-ce2bda8287a6","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":45,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"b90d16fa-e01c-48fc-9230-fde7cbb9812c","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":45,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"071e2546-48b6-4ebf-8686-d23aaa4c9ab9","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":45,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"92510fd1-7787-4c5a-b006-fc5cf4d2e763","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":45,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"6c84b0d3-1558-49b9-a821-0179347c478c","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":45,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"20898562-ceb5-422d-b91b-b1dfe9822007","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":45,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"b3bb17e0-5bcb-4649-b5be-40ad04fe2d68","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":45,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"60846982-d3eb-4d9c-8682-9792eacf801d","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":45,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"1a3c56b9-c84c-4758-8210-ba1fe682c16d","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":45,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"9fc658e3-7ead-4126-a29a-dd9ff2224da3","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":45,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"3059d157-a3ef-485d-9128-a5e496bfc368","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":45,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"dfb46179-4136-416d-9c57-61c54c7370db","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":45,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"4a2e0968-529e-43ce-bbbc-c5c4269b89ab","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":45,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"38ff88c7-d38e-47a3-bfbd-34cb13ed2bcb","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":45,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"d59ce11f-2dd9-4095-bae8-5eafaa6c89cf","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":45,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"39c38657-9554-4ffb-b04b-89fd32d9d4ff","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":45,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"4fa1d0a6-a2b2-44c7-988a-de7ec4461d8f","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":45,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"ea3e23ab-d86b-4217-9e6e-1f51ae933cff","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":45,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"8a95fa9d-ce08-4f17-b90e-b0e46e84622c","block_type":"box","text":"member.","page_number":45,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"941da8f1-ceef-4319-9cd3-fc5b4112c96b","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":45,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"8f3830ce-91ad-411c-8733-6dbcab45da64","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":45,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"69081676-2f56-4fa3-a2e8-476d6709123c","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":45,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"cae4f1c7-4e20-47f1-a6d3-d137429df575","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":45,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"de08b7fe-da51-4f08-b06b-6cd04ad328b7","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":45,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"be3b70cf-d618-4ab8-8704-4619d6b29531","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":45,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"c2f02a21-cfee-4d0e-a1ad-ef0510152a32","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":45,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"3de40a3e-9ca0-4cb3-a8c7-cbced312deaa","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":45,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"5f44fe2e-f088-4a94-aabd-4ee81327de47","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":45,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"52752a6f-1b76-4a84-86a1-a2fa73079123","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":45,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"7cd37145-7896-4e12-b1d3-0f0472c571db","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":45,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"8ef5ec21-e264-4c39-b899-67c47359ef98","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":45,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"524546a1-b529-4b61-983e-765e6e0b5e39","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":45,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"1cb271f1-6dc0-4c3d-bb87-4ef69672b702","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":45,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"2fed644e-7ddb-4a95-b5ae-5e8b55169a24","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":45,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"7f191c8b-eb5d-4f9a-b4b7-4154f6b5e314","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":45,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"0594bc4f-fd93-4168-a55e-0fcd99741745","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":45,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"9cb2ac45-af29-44f5-b1f3-8c589ab6de3c","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":45,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"74170b81-2adf-40fb-afdb-509af223aae9","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":45,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"5ef3c788-cf5c-4bc2-8df2-b5a5fef55a8d","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":45,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"2f38ea13-e266-4f83-859d-9249b754374e","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":45,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"42eb5a0c-2c86-40de-aaed-101b77e8da2f","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":45,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"01ef2562-7b0a-4598-8d58-5521ac450c4d","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":45,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"1d418ba2-45f0-448e-9303-72969eaf439d","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":45,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"0a2ac883-8536-4a73-9dcc-9b96fff2ee22","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":45,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"98973816-b46a-4a5c-a0da-fe0a92cba839","block_type":"box","text":"II-14","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f43b4f4f-00b4-4502-9bcd-9a955eed7917","block_type":"box","text":"NM1026U-5978945-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f143338e-f29a-467b-97af-9887c162ed64","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":46,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"cad099de-b8a8-4833-aac1-4e61f1d87019","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":46,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"fc599e17-0164-4d93-8fe6-6badae3c6b23","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":46,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"f7bb2dbb-6ed1-47be-9c97-653e4cd30b95","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":46,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"07a3d4e5-a9ba-4618-abda-6dcec6c5e812","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":46,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"b72897e0-15b7-4c93-908e-58483e0bb7c0","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":46,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"ef9d4533-a963-4701-adfb-cba91d7a3223","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":46,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"9a37a146-e16f-483d-be8f-9d1cc850c99e","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":46,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"993101c0-e53a-4da0-9816-8a9732604498","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":46,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"2990fec7-52fe-48c3-ac29-4df63294ba8f","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":46,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"e153e680-f1c6-43d9-ae23-4cba6d30d9dd","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":46,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"214fd034-192b-4732-b60a-7f048edce214","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":46,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"7f427e9e-5520-4e35-8bb9-26a98faa91d1","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":46,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"9bffd598-de07-4a0d-83da-5dab46870622","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":46,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"ea4984ab-cd3a-432a-bc5d-7fc95702953f","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":46,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"a1ad907b-4fca-499a-9948-e46b9021a0e8","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":46,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"d66f060b-43ed-4088-b796-c429875c6d1c","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":46,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"dc135eb3-5f9d-48e6-9c94-9a57551807c4","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":46,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"6cccbe0b-ba97-4e56-b414-b6468991dc13","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":46,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"86c5414f-92a0-40b9-960f-c7781c7af274","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":46,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"ef7a072a-2c4e-4b50-ae9b-87f7b02acafe","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":46,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"544badbd-34c3-4f65-ab5b-afcf7817c7cf","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":46,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"5457a884-e8a9-4df6-9380-985a05bd1a15","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":46,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"59318d8b-c761-40e3-80f8-7201db2b1737","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":46,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"91a5339f-b319-4a14-93ab-0850985bdbb1","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":46,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"dbf9e5ca-82bc-4b8e-9b6f-7beb8771ae2e","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":46,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"98ebbd42-8a61-40e0-a8f6-db756ba7e8b7","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":46,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"cec8e4da-063f-45f2-8467-00336acbec51","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":46,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"b93ee7e3-cbdc-4512-ac70-fc0ba5c3c677","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":46,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"9b75338f-1d6a-4e40-8fff-b5120cfe4f67","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":46,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"5b00c08f-8ba6-444e-aaad-a5ce2ffc4d95","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":46,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"13c0eb32-7f4c-4da8-9bc8-9c4ec456341a","block_type":"box","text":"collateral received under such contracts.","page_number":46,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"e8952569-9f92-4ba5-bf68-9c97f1691f5e","block_type":"box","text":"Risk Factors in Derivatives.","page_number":46,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"98a0b045-d15d-45bb-8a33-d84b608daa17","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":46,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"bec27823-427d-4629-b16e-f20bc9ca6cb5","block_type":"box","text":"Correlation Risk","page_number":46,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"2d993dde-a6d8-4f45-83e2-e4f62243c917","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":46,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"403dcb7f-22bf-45d5-8538-23d8823bf445","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":46,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"212d89e5-8411-4826-8d30-ebf57e487996","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":46,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"6807de8a-328d-41bb-ad04-464123e6639c","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":46,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"7cc5a7a3-c4ed-4b1f-b85a-6a3d4f378427","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":46,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"7443a4a0-d605-471d-aae4-2dfa48140316","block_type":"box","text":"Counterpar ty Risk","page_number":46,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"de76e01a-c81c-4bf9-b393-9aeb639622c6","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":46,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"bd41d027-ef77-4862-a4bf-45c85f10620b","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":46,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"f710ec84-d8de-4b68-8707-14216028d01e","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":46,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"db69b75a-bd58-4658-88f0-a6046c3a5ffc","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":46,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"0f43de57-fadc-419e-adfc-400ee6a12d1e","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":46,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"27cc37b7-1a05-4698-99be-a28e3f286ff6","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":46,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"3f7df602-d607-406a-9257-9ed13ef070ab","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":46,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"d1008573-7926-444b-9596-552016ad863d","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":46,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"c0edaf79-2d16-4280-af25-aa8a15c3aa3b","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":46,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"79ae49f1-cab0-4b5f-83c7-f9df2fff6d15","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":46,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"e0b820e3-8915-4af9-983a-1d996b3b4680","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":46,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"a9ffa467-32d1-4ca9-868c-d2d2fe3b297f","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":46,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"f53be8a0-190c-4d28-9d89-ec8019bdebbb","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":46,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"c0cfe6f7-4f8e-4999-bf0d-79f5346a008b","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":46,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"8601620b-9b24-4ab0-8e41-2018256ad131","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":46,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"89bf0bb9-a273-4b52-981a-31801a467b29","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":46,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"ca00f087-aa26-454d-b5c4-b7652580fe9b","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":46,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"1444b90e-b86f-4ab1-8efa-327b1cb86b79","block_type":"box","text":"II-15","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7036441-6251-46f6-ae0e-9bc98214538c","block_type":"box","text":"NM1026U-5978945-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cd6f108c-eeca-4621-995f-e614be61e2ad","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":47,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"8d819719-448b-44cb-934b-df791eefb206","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":47,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"fadf3395-bba6-4e35-a25d-e29626a9d65f","block_type":"box","text":"by the clearing member.","page_number":47,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"ad260159-b79f-4f62-ad0b-ebe72187a377","block_type":"box","text":"Credit Risk","page_number":47,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"746fe49b-088c-4b36-9b1f-26e814328cfa","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":47,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"3db2c7eb-920a-42c1-9cbc-297ba0d09545","block_type":"box","text":"honor its financial obligations.","page_number":47,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"48f9b448-77db-44f4-8b39-af2c97e15a75","block_type":"box","text":"Currency Risk","page_number":47,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"2ee35254-8f64-458e-ade9-a2bd7c5ed09f","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":47,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"5af6943c-53c7-4200-8019-42fc27997742","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":47,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"9c5f64c8-d405-4a42-a5b2-1f253d27d39b","block_type":"box","text":"Illiquidity Risk","page_number":47,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"e38631b3-4df9-4eb7-981a-e303e38b4f37","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":47,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"95967a82-1331-4853-9825-b8d081aef27c","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":47,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"9e710893-0cb8-463c-946c-98ca2120a36f","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":47,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"23f15948-0fed-46e2-b320-02895614b2a4","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":47,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"6ce6351d-41e6-4423-bb4e-33f3e0fa0d27","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":47,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"30f1e9ad-e191-41a7-80b3-d70bcfd299ed","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":47,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"4a25bf22-6594-4b5b-a9cd-ca824c18fc28","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":47,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"77e9774a-33da-4e62-89ef-d6b3c8b5bd97","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":47,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"b3887af9-ad02-4f73-b6f2-cdedf67e3c84","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":47,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"8c5c0959-670b-4b61-a322-4a2019c58429","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":47,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"5737b159-aabf-4a6f-a2a2-a2c2cd660a30","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":47,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"819ae1bd-c60c-4ae1-a564-b3358569cfc0","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":47,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"785fcb2d-a73e-498f-8045-d743236dc56b","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":47,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"c9f922a9-e506-49d0-8c70-e1d85bb51509","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":47,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"c18f9396-382e-458c-9bd8-89c10a1974b0","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":47,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d5761e8f-56f2-448b-b5f0-9be828fd8892","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":47,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"b06db8e8-bfb8-49c1-b8fd-5eeb915eb016","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":47,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"2bb51422-6aa0-43e7-a137-96c4136a0d71","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":47,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"477e5648-f74e-470c-8759-51a4793031bf","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":47,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"efcba55b-fa39-4dd6-8150-b8e5beeb9a7d","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":47,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"d01b7c2e-e324-4229-8ff7-93755fa166d7","block_type":"box","text":"may be disadvantageous to do so.","page_number":47,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"ef11ba8c-6fcc-4b44-9094-a7f9752c5864","block_type":"box","text":"Index Risk","page_number":47,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"70959331-6d1c-4bb7-bac0-2d706f469517","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":47,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"2f10ce7b-1aec-463a-9dd0-25e0991ccbfd","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":47,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"211e85d6-c65d-4649-b95b-ba685773c14a","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":47,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"4fc6c585-5178-4272-93d6-d89ca46b72e5","block_type":"box","text":"Legal Risk","page_number":47,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"c90c669b-e8fe-437f-95a5-45596a58a05b","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":47,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"878c7482-5454-48e3-b544-fa1842543eb4","block_type":"box","text":"or enforceability of a contract.","page_number":47,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"b4add93c-2e09-42e8-9234-1ed1d5545f82","block_type":"box","text":"Leverage Risk","page_number":47,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"9ac1df7d-e14a-40a9-82d9-7016386d3897","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":47,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"d4b5ecc3-d7c8-453c-b501-33094d354914","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":47,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"8f96033c-4e84-4117-a160-59e182bb5850","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":47,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"c329960f-0c3a-4215-9938-06ab78d0ea0c","block_type":"box","text":"Market Risk","page_number":47,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"818cf076-694a-43e2-ac4d-6e1e16685c6d","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":47,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"c7f36489-73dc-4498-8257-404c707ab90c","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":47,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"9c920aa7-2e9d-48dd-b451-552f29306a9f","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":47,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"ba55d1e0-97cd-494f-849d-02732199fcad","block_type":"box","text":"affected.","page_number":47,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"d54845ec-bbed-4b38-b22b-138b2e4f66c5","block_type":"box","text":"Operational Risk","page_number":47,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"345b64f8-429d-42ef-8f01-59a6f55bd5bf","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":47,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"1ed7d62c-df72-4793-91d4-f6b71dff2074","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":47,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"f65b3b50-12f1-422e-b856-af4c81e3239e","block_type":"box","text":"Valuation Risk","page_number":47,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"22e6e71e-360b-4cf0-9ccc-70eba8330c30","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":47,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"d68c3f90-6966-4982-8b4a-7b2bb128296d","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":47,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"289aa540-de68-4321-b17e-17ebe723b7f0","block_type":"box","text":"complex instruments or quote prices for them.","page_number":47,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"fbbc40ae-4290-49c9-ba8b-d6ea4127aba2","block_type":"box","text":"Volatility Risk","page_number":47,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"4634003f-aff3-4935-a8f5-baf98ed96381","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":47,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"31d82801-c663-4b51-8d3c-d635fa734e98","block_type":"box","text":"Types of Derivatives Transactions.","page_number":47,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"dad6d243-1e25-45b2-a71a-1803aaff8712","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":47,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"2a091999-c26c-4113-887b-6deed48a5cb6","block_type":"box","text":"including the following:","page_number":47,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"ec04e4a4-84b5-40b5-930b-6b904981c775","block_type":"box","text":"Futures.","page_number":47,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"d0de6dd3-848d-40ec-b36a-7b5cf419e4d6","block_type":"box","text":"II-16","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bba68507-96ef-4731-b8df-de8be3a94d7f","block_type":"box","text":"NM1026U-5978945-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f9e36c57-33f2-4c88-a3ac-1aac19cc0979","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":48,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"526b5638-73fa-4de2-9c15-a4cb3258d20a","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":48,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"0d57d10d-e923-4f0d-9127-cbaa166b6d30","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":48,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"07e430c1-964f-4dcc-a83e-fd09435ba05c","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":48,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"521989a4-f2f8-4e15-9faa-28bf53842385","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":48,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"d8364c4f-0a9f-437f-81a5-89b13396501f","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":48,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"aa2a2355-dd6a-43d4-88af-5c89b023ecf2","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":48,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"4d9791d1-0fad-4f94-b36e-55087eda600c","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":48,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"e4e83195-1b92-4e24-b483-675ab039f551","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":48,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"8e947940-3ca8-4b2d-b704-e25450e15f93","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":48,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"d1bffa03-9570-495e-9a41-2886104f2823","block_type":"box","text":"of the futures contract.","page_number":48,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"5da4d9fb-a66b-44e9-9e9b-aacc0b0f17fc","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":48,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"9e800ead-074c-4780-903d-86ac14e831fa","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":48,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"1a0017ce-f403-4a77-970f-bd52db9073b7","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":48,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"3804e5eb-7129-4c56-94cf-387efcf89092","block_type":"box","text":"relating to the futures position.","page_number":48,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"8df0e392-8637-4bec-89d2-aa1883c8eb60","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":48,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"521ce65c-6400-4163-b04f-9f630361fc08","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":48,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"446d88a6-3002-44b2-89fd-4f9c8215d244","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":48,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"6353798a-37ca-4872-a0b8-969d86a6fb62","block_type":"box","text":"Regulations” above.","page_number":48,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"993864db-4f39-4e58-8832-4b4e1c94bf38","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":48,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"d4e6164a-4512-41c7-ba3b-8780d372308a","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":48,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"2725d903-b781-463b-b2d1-38d049c219c7","block_type":"box","text":"(","page_number":48,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"38e66b34-7556-4cf5-bb00-b493944e2589","block_type":"box","text":"i.e.","page_number":48,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"529dd41f-0fd3-42d5-9b58-cbc5002470d4","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":48,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"7a87d359-0b02-4e91-a082-b10d47bd35d7","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":48,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"60071565-6416-449c-a51e-e68df7dca0a7","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":48,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"9f1880c8-7c87-422d-b337-958a883ea0a2","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":48,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"968e9357-951f-49e1-98ad-40ffba035fa7","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":48,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"49fc92e8-3640-4af5-9796-30587542acb9","block_type":"box","text":"Fund intends to purchase.","page_number":48,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"b2696cfa-9e59-49be-a8d9-09e87e339544","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":48,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"863a761f-ac00-4c2a-897e-ef5b0aeb878d","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":48,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"c77a6d7c-fef5-43de-9b60-f16b80a59749","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":48,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"7111cbd9-6628-4eb7-bc4b-99e55a5c64b7","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":48,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"f872b18c-1029-45d0-aa45-91edfea18512","block_type":"box","text":"illiquidity.","page_number":48,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"5b3ff895-9f56-4ffa-bca6-c8b71c9752b1","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":48,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"c2907b3d-8740-4531-82e0-041fe1c95a02","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":48,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"da99ddfd-fadd-4f65-ab39-0519c67503cd","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":48,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"d58031e2-945f-4a6b-bccf-936ffc4d7c13","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":48,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"45d361ed-1203-4435-b41b-e7c2ae1b5215","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":48,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"8a6033e5-2956-49e8-825d-65ef702b4b9c","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":48,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"3b66dee9-44b5-4e2e-82b9-9b6abc86ee9f","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":48,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"b008211b-5250-4c56-b7f1-564465c7df78","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":48,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"cee28869-19be-4886-a8bb-5b1dee2206c5","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":48,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"f523f12f-79dd-4642-bda9-1c7652afe644","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":48,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"b58e1f7d-9991-425c-b255-28598403e870","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":48,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"0822dfaf-858b-45fc-988c-042604bc2783","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":48,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"e069be8b-f543-4b93-bc84-cd83dc4cb29d","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":48,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"74d48edd-4e2d-4ef0-8b30-e434e3912e6d","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":48,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"760f7df0-b839-4ba6-9dc6-4185b7945190","block_type":"box","text":"Swap Agreements.","page_number":48,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"c305d2fa-d3dc-4990-89c3-6eb49e969562","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":48,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"38cd2a07-274e-4420-b90d-97f52d865c62","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":48,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"8bb5ba31-252d-4178-8420-c888019cae06","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":48,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"7e7dfa03-503a-4e2c-bb7d-abbdd91d2c85","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":48,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"80561eb1-bada-40d8-8d68-bdd93c176375","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":48,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"fbc95212-410f-419d-9c14-cd43fd3671ce","block_type":"box","text":"a “notional amount,”","page_number":48,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"ea5b64d2-dcab-44cf-b5ee-41f4a99654a1","block_type":"box","text":"e.g.","page_number":48,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"2e5372d6-788d-4def-892c-0421a937667a","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":48,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"7ad811e8-789d-44e6-a1f6-fee05a9b6ee8","block_type":"box","text":"II-17","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d863e46-68ec-4b9e-a7ac-4491210c484a","block_type":"box","text":"NM1026U-5978945-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d6ae7400-73a2-48d7-bdcb-3951af8013e9","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":49,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"e2569c43-1c2b-4140-ab22-cf0473bb542e","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":49,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"cc732b7e-d6e9-4b19-bf6a-1de4dadd3af0","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":49,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"1a2d471e-bfbf-4829-916a-0e4cdde8ad6c","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":49,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"c4886aaa-f1c7-4ca0-ab54-2ce407df0a4a","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":49,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"5aa156a6-ba76-4a5c-b7a6-5ddf9e616d69","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":49,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"5edd36f0-052a-446d-a706-e1dd930ad1b1","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":49,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"c8ee0b52-577d-4b67-bd08-d360e4fb35c6","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":49,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"7f5fdeeb-2d65-4568-9542-041b8c780a84","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":49,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"b00e0df8-ad2b-4fbb-b386-b24a79c0c5bd","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":49,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"6ad28e32-911b-458c-a586-af4e65081dd0","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":49,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"0c4bbdcd-8c95-432b-8520-e2b5eaa3b4f8","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":49,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"202b9f59-4401-4e82-840c-bb48e12f1c06","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":49,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"ff97a5c0-c89f-4ed4-b074-be46fa050a9d","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":49,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"568c024b-d848-45c9-8631-c99a1efa95bd","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":49,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"46a6fd73-3cf9-4b6d-9859-a9640dc2475f","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":49,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"bd2a2596-bae8-40b9-b054-5d4db9f1cb6d","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":49,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0ef0fd0e-0cd3-4b06-9770-b45bc7121f2b","block_type":"box","text":"index CDS.","page_number":49,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"bea5aa0d-8919-430f-b012-4cd74001373d","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":49,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"6cb40376-2be8-41dc-af19-31c2666f3cb8","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":49,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"c80801bc-de9f-4c79-9f92-ba93815cb46d","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":49,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"d51834ab-4cdd-4ba7-a3a0-684da7cf7abb","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":49,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"c53bc886-544b-40f8-aa94-1112af349d0e","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":49,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"e8993cf6-544c-4b52-929b-b91366ae34cf","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":49,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"2081480c-030f-48cb-9add-0c34758d5a81","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":49,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"4d1eca31-44c3-48c7-a7d7-3b7d03ad348c","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":49,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"1c8385b2-41f5-4b56-8bfb-1855d2b3c954","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":49,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"6ffdc0ce-bb9a-440e-868a-76aeb2d04fc6","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":49,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"41396bf8-a9de-4808-be40-f3f25028d725","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":49,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"29820a0d-e79b-4cdb-a371-f0499eb53db7","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":49,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"02fd9fe9-4cf6-497a-b98d-4029789f9653","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":49,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"4320416f-ae0e-49c9-b852-7e406b1e8a1b","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":49,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"464f4a7d-fd23-452d-bdde-32cc982342fc","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":49,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"887d40a7-395e-43ab-b67e-3d0d9147fe1d","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":49,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"f82d8652-4c3e-44ef-84a6-7cefd791b981","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":49,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"4c67ce71-a3aa-45eb-a7e5-64b9d78bfd44","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":49,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"acb953e0-3e7c-490e-a580-bc1fb9a0ec22","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":49,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"4437a3a7-79c7-4dff-9521-0dc08383a49a","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":49,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"6460767b-d4ec-43c8-98f2-d5103b97ecb3","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":49,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"ecfd3528-0342-4619-908a-5b845531659d","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":49,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"a6bd1d65-262c-416f-a847-bfddfaa63cd5","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":49,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"c9550770-632d-489c-8341-d5537f273ee7","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":49,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"41f815d5-cfea-4536-92a1-9caad8ac3636","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":49,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"515b70d4-9aba-4448-b64e-bba775a3d8df","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":49,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"207541aa-ada4-42bc-8980-b5fd049ea835","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":49,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"e8f61e89-8977-4d3f-9e53-1c600addb663","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":49,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"924bbef9-21b8-402a-84da-0c9f7c0e3c32","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":49,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"be9d0f8e-1291-4048-ae1a-fa18a33989ba","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":49,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"bded7f3a-d15e-4fc5-bb0a-5114178545e2","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":49,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"4053430a-2b4a-4893-af04-9a6c86b66283","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":49,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"f260c718-9778-4267-96e5-2459383d0378","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":49,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"5b67ee53-b97d-4426-a582-2cfe63b22b3e","block_type":"box","text":"conditions.","page_number":49,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"bc4101de-3a98-4aee-9f98-70c5922c80e4","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":49,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"a618d2b8-ffba-4e9a-8489-74b8853cf63e","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":49,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"80ee7dc3-cc57-4544-b2a2-d7e48c2ba4d8","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":49,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"671e5f5c-628b-4128-afde-d2d9ab6f6587","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":49,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"9d1c289c-2211-4b7c-a443-4549322e1e00","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":49,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"67400667-1a71-4977-839f-8c1a800efb11","block_type":"box","text":"II-18","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31ddfd7e-e224-4002-9cd0-dc9802e1702b","block_type":"box","text":"NM1026U-5978945-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5708b433-8790-462f-9d71-f7edbf65cfbd","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"eabccc9b-2c33-4196-9b74-09f18c4c89a3","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":50,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"2f444511-8175-4536-ae0f-c5b6e0b0d514","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":50,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"9e552713-13c5-47d2-981e-f9acc2535412","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":50,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"eba48ec3-fbde-4290-94cd-2b4fb0c23c44","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":50,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"2097869c-d8d7-4a0f-8417-f658a6366bdc","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":50,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"3e359ecb-7e0e-43b8-9d47-f4d57d0afebb","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":50,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"c1842f33-06d4-418f-90ac-2fa7c1714f2e","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":50,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"82e66bd3-0f78-4857-be23-54087076db20","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":50,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"00f2f141-28a4-411e-9bb2-e59761f9dd5a","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":50,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"c73ab6a1-0b2e-442e-b2f5-a87a8dc9cb25","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":50,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"a9106ff0-b74f-4592-a7c5-d253dbc1b132","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":50,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"e59188e4-e3ef-4e3c-820b-08a9feb7648e","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":50,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"f3e56b9f-d714-4122-843d-9882a8d15cfc","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":50,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"42cbdd4c-bb30-4e99-92cb-5cc25fbd09c7","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"f441a4b1-d836-4a4d-b2b2-90cb2a837ee0","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":50,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"b9bc9f5b-a722-44e7-9254-3d32c55d634b","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":50,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"ce6ab806-b7b0-4bd8-aac9-f0de83f91f63","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":50,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"b5ab3729-56c1-4c08-a25d-e87cd012ddd2","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":50,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"918bd4ec-8899-483c-8568-b1ec7b6431ef","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":50,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"4aa457fa-ff22-40b4-b479-6c45ad69639a","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":50,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"3a8bf748-346b-4555-b6e8-878564887484","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":50,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"f7b3c6b2-9071-4056-9a32-384124e18fe6","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":50,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"bfe93aea-f0fe-4ba4-a1e6-18f04f897901","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":50,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"6bfd9f3d-9f0f-4cc9-8655-538dee41b0bb","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":50,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"9128e725-2ee2-40fd-9cbb-2296602c29ed","block_type":"box","text":"cleared interest rate swaps.","page_number":50,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"ac214dbf-6a7a-4d9c-bfe1-1bbd1e720151","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":50,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"31dd7ffb-4f80-44dd-bddd-b216bb1f27ed","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":50,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"853a4f4f-2eac-43ec-b699-89b7db09cb4d","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":50,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"bc85da84-39e2-4009-bc2b-bbd4ed3c1c23","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":50,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"ea07c949-7dc3-4e7e-b802-b4f85f86553b","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":50,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"f7d5a615-8395-4a81-9184-34c213b31c69","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":50,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"7887e3c7-364f-4556-a5d3-ef9d3438a530","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":50,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"f562eced-a857-4dc7-8c30-b6aab104bbf8","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":50,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"e6fea151-91dd-44f3-852a-ff2a274b1edb","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":50,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"a18ca519-5f3b-4b15-9dc2-62a45de879a8","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":50,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"6d897b7b-b45b-4d11-af19-2b2eeb17dd3b","block_type":"box","text":"or variable interest rate, index or asset.","page_number":50,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"9c8db974-192b-43fa-b864-9dbad98439a6","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":50,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"8180d2c0-eeae-42c0-9235-3ba35c7a8fcc","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":50,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"f652bd39-31da-4f44-a562-ac556cbe4c73","block_type":"box","text":"such interest rate floor.","page_number":50,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"5a57d87f-a1d3-447d-ac58-467b582ee690","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":50,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"7649ed93-9140-411a-8556-68add1b6685d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":50,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"1a8e2508-a075-42a5-9d25-8f5f8acefc94","block_type":"box","text":"such interest rate cap.","page_number":50,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"a17fddc1-52ea-4f79-a1e9-7ca7b50fafc2","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":50,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"f68be7d2-2428-4e08-92e4-04beb971e361","block_type":"box","text":"commitments to pay or receive interest,","page_number":50,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"b3a0afbb-c740-4327-8b21-6cffd501b087","block_type":"box","text":"e.g.","page_number":50,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"71d7c8f4-0aa0-4379-a2d6-dc71f188dde8","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":50,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"9ab19d9d-a383-43f0-b6a3-002b102e1a7a","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":50,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"3e06b4fc-cc9f-4742-91af-6dce582530df","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":50,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"33f95cf9-de0a-4e12-a209-a7902502f4a0","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":50,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"292a5cd6-f1d6-4a22-9265-c68c5ab9ba80","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":50,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"9d3c0fb5-e1c8-45b0-bf25-416c0b92e581","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":50,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"42502d7d-4dfb-45eb-b9d8-c8fa272dae75","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":50,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"463d2b09-d99b-4c50-8a61-cdc591342ab1","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":50,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"a63f0244-2a33-4637-b4b8-d3e02d72afe0","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":50,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"ad43f400-c518-4c8e-83e0-a620f03f6b00","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":50,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"b1d4e425-4a39-4476-9ee8-37a157edb692","block_type":"box","text":"II-19","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"44347de0-8dec-47d9-9822-28392d395c20","block_type":"box","text":"NM1026U-5978945-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2d77ac5b-283e-4cc7-a2da-d81e19540553","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":51,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"16b05aae-540b-4fd5-9a77-6000c2f72cd5","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":51,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"85decc82-e4cd-403b-bd52-68616f68a313","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":51,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"74bcf951-7db9-495d-810b-cfe509a0c661","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"ce83a96f-e46d-4272-bab9-a9ee916398f2","block_type":"box","text":"Total Return Swaps.","page_number":51,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"19d985e3-8275-47ee-ba1c-27a7ac97f392","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":51,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"64f7e666-0d3e-4310-accc-f82e05375fe1","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":51,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"e94c8d31-8e06-43c4-96b8-7190b1045406","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":51,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"cae7fec5-b428-4e6a-b95d-149ebe328b8f","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":51,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"48583d4e-50f1-4d6a-a258-17f27b86e418","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":51,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"03cd9e68-9696-4c31-a71c-e05a939ac21b","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":51,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"88a66b64-de68-4789-a13f-1896e4e30643","block_type":"box","text":"“contracts for difference.”","page_number":51,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"8ee5f6e9-de5c-4f99-93da-5667bebf0db5","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":51,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"9cb3c582-ad6c-4213-9d72-b1954ad3ae6c","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":51,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"8ffec9f2-1ee9-4492-92ca-63aa921b378b","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":51,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"460243c8-2494-4dc0-9742-4ceb476b15de","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":51,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"ee7d1237-0a80-4b87-b301-b78a314d05ee","block_type":"box","text":"the notional amount of the swap.","page_number":51,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"306f6d69-ba5f-4ec5-8f77-348f2f8e7ae4","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":51,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"01301904-69be-4cef-8b9e-956f0ea420d5","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"0a7b4fc3-1e69-41d1-9107-df2ec0624be3","block_type":"box","text":"Options.","page_number":51,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"eb3ad244-715c-4ab2-82fb-a3955a3db782","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":51,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"7080dc88-c353-4ca4-8ebd-654676c818c1","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":51,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"8595ca79-c09c-429b-9378-56bcf72c49a3","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":51,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"d2d915a4-ca2a-4812-991c-a21ae81800c3","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":51,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"f1cf6e91-bac0-4494-8dc9-dd36981d6fe3","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":51,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"eefb0bc0-0128-4795-a736-9da5c534ea77","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":51,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"cbcb92dd-7ebf-4401-b92c-8facc8df06c5","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":51,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"0914f610-01cb-4dcb-b4c4-b139fc2ad80d","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":51,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"0f767caf-ec27-4d51-a24a-a57edd047a58","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":51,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"51f7ac90-fd5f-445f-b6e7-dfddd83e70f9","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":51,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"c0ed18cd-2ecb-484a-8778-77fc7a3cab8e","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":51,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"1ef1b411-acb5-4605-bf5a-5d88522e5b54","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":51,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"05794b33-3856-40d3-b694-3a1957461329","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":51,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"f5485699-8608-4790-b9c0-028580cd9c45","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":51,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"77bf1c6a-e90b-4b7d-bad3-ee1e84073ed9","block_type":"box","text":"OTC markets.","page_number":51,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"85d55abc-e1d9-4e23-ba0b-12bebec3ef57","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":51,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"cb064991-db74-4ea0-892c-53f35a321662","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":51,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"073a98b3-c1ac-4608-a31f-1bf491b53ccf","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":51,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"8d6c5f56-6d41-4934-87e3-7cfc8218a121","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":51,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"95987f34-e462-4181-8145-4def6a91acea","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":51,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"79660697-d330-413c-9a92-4b393ea1ed44","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":51,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"1a35c24b-4e45-451b-a854-b7784275152e","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":51,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"b6f3b437-a67a-4202-9462-77ca4e817238","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":51,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"97c9ea01-9d86-4315-a170-9927dc946f2e","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":51,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"cb5b86d3-18ce-404f-917d-3a0b2ce89333","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":51,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"2f4dcb1b-b2c7-498a-931b-646d72f4b80d","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":51,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"3f25dc4c-c2f3-44a8-b670-acd582235149","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":51,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"e19651fa-6397-4e5d-98fc-8332f84e7923","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":51,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"838c04b0-6f5a-435b-b6a7-ca9785beaceb","block_type":"box","text":"terms.","page_number":51,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"e4bf6e55-0ee1-4710-a031-a2b5920ebc13","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":51,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"5c0ca885-5f74-40ef-8f6e-f603a32d0671","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":51,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"6537f17b-15df-4edd-8104-b396d4dd9675","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":51,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"cb1a18b2-f345-44b7-99a4-15d3bd5bca04","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":51,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"b33489ed-fc7c-4fc0-9acf-79e6a44a6fc1","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":51,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"e56bf6ad-2088-477c-9962-8c3670f73e28","block_type":"box","text":"II-20","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4abf2a3c-99d5-49b3-b05e-106ef321192b","block_type":"box","text":"NM1026U-5978945-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"54661702-0d27-4009-916c-9e05e3dfd57b","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"46ca869a-681f-4b25-9a9a-e187519fce0b","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":52,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"253ceffe-aa39-40f7-bde6-70bdfe5d87b5","block_type":"box","text":"Call Options.","page_number":52,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"22b40fcd-6017-4088-b01e-059d0f2c9ce4","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":52,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"cfc3c097-a477-4c1d-afa7-a16e8dc6964e","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":52,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"8bfb4203-592f-4761-9c19-ffac73979ded","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":52,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"65c75363-fdcf-46df-99c8-c480e4e27c17","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":52,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"44c8ac3c-cfee-4605-b851-2cb790b91d3a","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":52,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"c227f67e-18dd-4a4e-a2ac-112d62d8b4d0","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":52,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"807005a8-8c9a-469d-8ec5-44b9616dec65","block_type":"box","text":"of the option.","page_number":52,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"0650b702-6b5e-4a1f-b8d6-34f2b7e66e85","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":52,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"f684760e-cc14-42ef-972a-56d6870a3585","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":52,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"2fbf7ce0-d389-4061-b5c7-9cd22661c1b4","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":52,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"da435c77-2569-4c76-b662-e94b221d83ca","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":52,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"66790acf-9b84-4323-8f00-975e6146be3b","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":52,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"ef931402-15f6-45af-9651-1853f781d52f","block_type":"box","text":"A Fund may write (","page_number":52,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"623849b6-6a07-420c-b15e-2e2a729974d2","block_type":"box","text":"i.e.","page_number":52,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"a01b6631-461c-4ed9-8b6f-b60bf1eafde3","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":52,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"714d7651-8243-4d63-ab63-35b9a14312c0","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":52,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"9b9e52f9-2cbb-4311-ac73-51f05349adea","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":52,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"d19e1de0-5f0a-41d3-b0d1-d5ec06ad4539","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":52,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"9c6040bc-1510-4a91-ab9e-055f44f2d1ef","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":52,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"52031123-deef-4925-a258-67474fd81ad6","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":52,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"3448d3aa-2b96-4ea6-a81b-e308dd73682d","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":52,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"4aa23858-5d93-4a9a-91db-c6eaebea11f9","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":52,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"75f3e184-f2b5-40f3-816d-14609fc3d32b","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":52,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"061b3cd3-6f5a-41f6-9bdb-a42562a50fda","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":52,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"8f2d6881-f18d-4f28-a9ee-5d03a99c1d69","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":52,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"e85cf8cb-2fb9-45c7-a2b1-f83469eeaf4c","block_type":"box","text":"A Fund may write","page_number":52,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"a4b901c1-daff-4172-9b78-11d242464952","block_type":"box","text":"(i.e.","page_number":52,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"e0ea5170-8cdd-471a-b30e-62f21fad7a96","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":52,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"9714f772-82f3-4641-9d53-7e6c1117d9d2","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":52,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"6554c508-9653-46b4-b58d-2001036b25db","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":52,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"4db3cd5a-63e7-4c26-a88d-f056baa3ac9a","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":52,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7979e1d9-37b5-4fae-8c3f-eb0b8116dbe0","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":52,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"e5c20670-3965-44c2-8179-bca98fe5bf47","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":52,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"b2df57a1-a27c-431d-a7ce-a1a68dd03482","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":52,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"c87081e5-d92c-43fe-9269-a820d158862a","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":52,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"6d994265-8d4d-42b9-bcae-a7db8b959c13","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":52,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e61a8519-d05d-43d0-a6e8-3ede2310efb8","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":52,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"b0103817-2263-4ea4-aa28-077c41d6a607","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":52,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"e6b79599-f575-4ed9-9a3f-133b8d7fb53f","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":52,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"872215bb-751e-4ef7-9555-36d3fe8c4a81","block_type":"box","text":"Put Options.","page_number":52,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"306a3799-361e-4575-9a16-49f11838a132","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":52,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"47e9ff7f-282a-4866-a401-52d1222b03f2","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":52,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"d67dad43-82da-457f-bffb-03b65ab57d14","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":52,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"d5f0d990-2302-44e6-a1e0-7e9bcec07e2b","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":52,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"f5c459ab-54c5-4512-869d-35528f8d808c","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":52,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"c676cb06-4682-4111-b660-b6506cb9234d","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":52,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"4d7e1a10-c878-400c-b19e-912de2574135","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":52,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"47432c4a-e968-429a-8a6e-7b2a0b7addc3","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":52,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"393b1394-49b5-4cb8-ab70-c59c20300ff6","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":52,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"cadbf451-7764-4d4c-b761-38602a0d3a85","block_type":"box","text":"purchase uncovered put options.","page_number":52,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"bea53f9b-8961-4258-8165-8910d924c288","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"cf9fb8f2-c312-407a-a0fd-be438546a7d6","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"e33aa4eb-79ea-48f1-8bbc-b2481e460a9a","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":52,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"2a31a419-51d8-4056-ae98-c3886846863b","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":52,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"4d177c26-bb63-4734-86f0-c04620de802f","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"cdf16717-0b2f-4e9f-8780-2cb43d891ae1","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"14dc8d03-499b-4b97-8f5c-91107933a9ca","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":52,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"1f0b8a8c-c92a-4328-9acf-d8dba381e206","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":52,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"779c45d6-f734-4225-8f04-7d8dc7c2e00b","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":52,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"48787ed8-6159-4605-9891-01c3132c9793","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":52,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"650e4ed2-4b60-4497-bcff-97998f28f09b","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":52,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"457a9cc2-b42f-4e4f-8837-124c43229f69","block_type":"box","text":"II-21","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40a3d35c-15e2-4c3b-b683-92e2d6b1e7a1","block_type":"box","text":"NM1026U-5978945-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cd47712e-00b8-42d1-b7cc-b7aa67e5f50b","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":53,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"3406de03-6ec5-4a13-bb86-1ca205c9dd93","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":53,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"162317f9-6cb3-4ee1-adbc-243fdd7e7fcf","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":53,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"69884bc5-aff0-4167-ab41-d803b05fe090","block_type":"box","text":"the exercise price.","page_number":53,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"ea57e17d-5865-4a53-bcd8-c19fda317058","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":53,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"64551a5e-bb22-41a0-9f9e-57029cf98973","block_type":"box","text":"The following information relates","page_number":53,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"2cf23ee1-a1ac-4da4-8c96-62130249546d","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":53,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"3660d92d-aa3f-4f49-8840-43abeac83aa7","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":53,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"da521a7c-7330-480c-acf0-f3bbcd502716","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":53,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"c7028528-d784-460a-8c78-b09a749f0b2e","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":53,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"42fd723f-9a91-4141-801e-9bcf1a158500","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":53,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"796b0b30-fa1a-4bd2-99ff-7e19a9ce281e","block_type":"box","text":"market in order to maintain its “cover.”","page_number":53,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"cd338397-b5e5-4530-b193-b7e7a43a4d71","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":53,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"158dc413-1f50-4e49-91d9-e305ca428158","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":53,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"468ad29d-3ef2-4092-bc9d-07137ceff0cd","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":53,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"acd6ae2f-9634-444e-affa-404dc70cd942","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":53,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"da78de9a-d777-48cc-b86d-99923ee64126","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":53,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8ea1819d-71a3-416d-a72f-61d643dd474c","block_type":"box","text":"and incur transaction costs.","page_number":53,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"164eae20-35dd-44e8-9fe7-95182695ab4c","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":53,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"08549a39-0bb0-457a-8714-2a9319c7beb7","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":53,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"d3ffbf10-403d-42db-839b-eb4d0d8e5656","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":53,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"facb733f-dd30-48d0-90bf-a1d236d59510","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":53,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"9f6b99f0-3c99-487e-9a31-0f885fe94fff","block_type":"box","text":"i.e.","page_number":53,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"5df13637-93d5-44d7-8833-d05244a9b661","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":53,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"c7bc5783-0fa0-4c70-ad3b-7995ba94fe71","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":53,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"96372095-69c7-43de-b4db-3d4861cb397b","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":53,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"5768f7e6-d707-4e21-8772-b62da82d4c4d","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":53,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"3275a1c4-5210-4d14-bf00-08c8b556f948","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":53,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"48f20897-1a6f-4367-9b58-58cd0e23893b","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":53,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"a481007c-a5a0-43bc-852b-a0d73dc524eb","block_type":"box","text":"required, to be cleared.","page_number":53,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"586fbbbb-fedf-49b2-965a-39132cd51231","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":53,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"aec08818-08fd-4889-8e00-4aa7d1dde9ce","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":53,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"d10f6e14-2841-4e1f-912d-4122ef749d45","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":53,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"8bc5a12d-0e6f-4379-8020-a9bbec745cc9","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":53,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"37d0d932-8e7e-49fa-a826-e323dac252e1","block_type":"box","text":"Derivatives” above.","page_number":53,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"484ec232-c180-4bb0-89bb-0082478ce42b","block_type":"box","text":"FLEX Options.","page_number":53,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"1da25a17-5a0b-4e48-be6e-35a1e522b9e2","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":53,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"d3f83820-d853-49c4-a493-1f5bfdadb55e","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":53,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"119eded4-1fd9-4c76-ac9a-ad0dafe4cb8c","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":53,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"297c83c4-89cc-4d12-bf30-cc2fd5da1764","block_type":"box","text":"exercise prices, exercise styles (","page_number":53,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"5436c344-9bfd-4bb8-bf56-92b41cca6b9d","block_type":"box","text":"i.e.","page_number":53,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"51409e54-3347-42aa-8065-66c6163231eb","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":53,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"da9c177d-2e54-47d3-a02c-9e873297127b","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":53,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"8514a1a5-8ec6-4104-8c60-71d4a51a7eaa","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":53,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"4c08855e-3c2c-4c6c-b1b9-2053e958fa87","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":53,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"389197c5-b001-4a99-a70a-d16a89a470e7","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":53,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"10dfaaa3-e12f-49e6-b748-90c54c9a1a52","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":53,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"47165159-7df2-4c16-9591-9bdc6db4f0d0","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":53,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"564830c7-557d-434c-bf9c-d8e509c1807f","block_type":"box","text":"FLEX Option’s expiration date.","page_number":53,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"b4909450-8774-4e34-ab1b-6596b69aa36d","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":53,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"14d544c7-284c-4c18-8203-9eb010533453","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":53,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"08100651-f152-4c5f-babe-9dfcc6174cb8","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":53,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"a62a6cc3-4f5a-4d5a-849a-58f324c3dbc2","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":53,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"20c156ea-4f03-4970-af1e-afb359b7df78","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":53,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"3b825f17-7074-4b73-b7df-35f204f684b3","block_type":"box","text":"FLEX Options contracts.","page_number":53,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"f12e973f-2fe0-487a-b0d5-5f4c548bff4b","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":53,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"b8254f94-f7d5-4e23-87ae-f6053e908d92","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":53,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"05518942-2452-4cf9-9767-c109e2839997","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":53,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"8440bf7d-fecf-429c-bb89-9b49161eda70","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":53,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"b4a8e03a-9a22-4af9-8d9e-0a711de2c95a","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":53,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"36d791ea-492f-4ad9-aa13-afad779cbfc7","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":53,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"bfc218b8-14c5-4617-b5a4-8b8f1130f5d4","block_type":"box","text":"II-22","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca9e8df2-57c3-42b9-9a54-573c6eb01549","block_type":"box","text":"NM1026U-5978945-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"261b6b8d-6b53-472a-849a-4a29cd08a38b","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":54,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"f380afa9-e277-4522-943b-43df10b5dea3","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":54,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"e7daa2ef-fdf9-4450-9161-38502815a4d7","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":54,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"6414367f-3ade-4521-9a6f-b2952584dbdc","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":54,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"1668090f-d004-4bde-b380-ed7f1f4599a7","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":54,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"792f70ba-4124-4390-8bf7-5ca7666f3b55","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":54,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"5cca3202-763b-4f69-8edf-6567d3b9f452","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":54,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"6dae11ac-7f6a-48f3-8e0e-d8061e1b8b4a","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":54,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"461e80a7-eadb-4a74-87cf-382a9bf24984","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":54,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"afbcbf12-022e-4054-8a40-5ad968414265","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":54,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"fd8195ec-4d27-48e7-a612-194862529d68","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":54,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"c02c0df0-95db-4c1e-ac1d-5f54bc5f4675","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":54,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"a2971183-e59d-444f-9c18-53d03e78bfd7","block_type":"box","text":"expire unexercised have no value.","page_number":54,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"6c9b03f7-23fc-4323-81ee-317c7979e957","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":54,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"6a625037-78bf-4e7b-82a8-6f83dca4052d","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":54,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"f1ab3a7f-f9bc-4031-a51b-628f3029ad6c","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":54,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"cf0b9c69-b706-4c42-8187-1683a826e2d9","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":54,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"a63ee91c-edda-419c-aaba-a331571deac1","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":54,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"ce39b187-c732-453e-b7dc-3c03deb2c603","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":54,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"47addf98-54cb-4324-ab67-08c0265e0d51","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":54,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"2b55856a-fd99-4241-8861-615875d65f84","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":54,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"2deb310f-51d4-4b25-acf6-e07923e62329","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":54,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"99a3a4bb-4505-4d17-aeb6-e90647a548ce","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":54,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"c62c16e1-3838-428c-aeb0-ecefa574faaf","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":54,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"3c1c2552-e654-4fb1-aa15-66c6ede66db2","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":54,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"849a1bb8-9472-4f68-8de6-8a0974364a4e","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":54,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"d6b243bc-666d-46f4-98c8-ffbf0a9a935f","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":54,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"f370ceaa-eda9-41e0-b130-4536da50155a","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":54,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"55bb24e6-a6bc-47de-9719-0a1ae34a7dc1","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":54,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"1e25bfb9-3316-49cf-96ef-542b4db478fa","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":54,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"aa387ef0-ce14-4af7-b0a4-351d3dc0ca3c","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":54,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"3af22fe7-01ae-4979-93f2-4fdb781bb171","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":54,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"f2cab1ad-d3c0-43d3-92ae-4a177ea74e65","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":54,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"ba522cb5-729a-4e97-9cc3-3135e925e0a5","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":54,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"3fa58f46-473c-4e75-aca2-4f22fae1e083","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":54,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"de0aed54-356d-4254-a4c3-b811cd69aada","block_type":"box","text":"Foreign Exchange Transactions.","page_number":54,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"4bfb412f-ce55-4078-b9a6-e40755f0c6a1","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":54,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"7c56e490-4117-43cb-96f1-fdbac5cd4116","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":54,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"7184aa61-8bf6-43d6-9afa-f8de36a3b1fb","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":54,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"42c8aaf7-d6fb-4eb6-9569-cbb41e80cbee","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":54,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"07e23480-23f5-4bbe-8265-bbc87268a22a","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":54,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"63f4cc6e-6cf6-4ab4-b292-9fde85e6cb8c","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":54,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c5fc3a6a-ba63-45b8-9df8-5200810611e3","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":54,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"e0fcde25-769e-4298-9762-f38cc7320b86","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":54,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"66850da8-cf57-4f5e-9f7f-18f5ad338c70","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":54,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"a778f7f6-bdff-424d-88b5-8dc49f0ae56a","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":54,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"509dc6e9-bc98-4da9-a3f4-2f056106831d","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":54,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"cb89ee6d-a54b-4e03-90ee-3f8b0db9c315","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":54,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"058a18ee-5e33-4169-a18b-1ad107866e11","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":54,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7e44374d-76d6-4649-b996-55e5922834b0","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":54,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"c33360ae-62f0-4ce4-8626-947a40390d38","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":54,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"ce5c94b9-3736-4866-bbff-35c552009570","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":54,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"6d295c1a-cfa8-4b32-8cee-66e0702a984e","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":54,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"ac52a8c4-b50b-463e-994b-304325b9fd1d","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":54,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"d73e0161-6a09-4964-ad03-39a5087cf38e","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":54,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"e91e0b55-8e38-485c-824d-716c196922f7","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":54,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"d0ea80a4-0b85-4241-b80d-943b74d80ad0","block_type":"box","text":"II-23","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"43b3e0ad-eb31-40c6-9a32-af803c889c65","block_type":"box","text":"NM1026U-5978945-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d245992c-466e-4fa0-b20f-87e4ad00fade","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":55,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"698ae2d2-0992-44cc-9c06-a748865ecd76","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":55,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"7c164be2-62e4-480c-a527-65dd7850a14b","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":55,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"b82c0a40-6297-4ac3-a09d-273d40070f43","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":55,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"7a7c87df-44f7-46e2-8b97-1174812406a0","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":55,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"db0158b7-a106-45c6-ab1a-e0fb1a7d278a","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":55,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"50dea901-0be3-4a98-9c1e-2ae844b568cd","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":55,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"cd765f84-b032-4181-a021-4836b0d56931","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":55,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"e1a4640d-1712-4b8a-9577-129ecdaea111","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":55,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"e6ab7cad-96b9-493f-8897-995803dbeafb","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":55,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"2ddfbc3e-dbf0-4e68-8fb9-4e9b94256a94","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":55,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"c487060f-0ef9-48f2-b625-c75278a500e8","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":55,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"9528e2a4-0141-4a93-bf82-608791bbcbb3","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":55,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"4d9fc98c-0155-4b49-aaa3-0f7d75a143d0","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":55,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"424b64a0-d2f2-4042-9334-ef77129e9604","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":55,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"88b06a9a-a371-470c-be0e-b9bc945c144a","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":55,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"534e944e-7ac1-45f3-993c-482ce9d0f4ad","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":55,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"49999add-ab29-4bd1-af2a-69bbc402d3e9","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":55,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b5676f7c-0eed-4724-8b7a-b61a894dd253","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":55,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"d7d8fe74-f063-4473-852d-d7a2f0f8cfe6","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":55,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"a51fbbf3-3fd2-4066-8e52-9f6f143d2def","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":55,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"59c45d03-bc13-4132-a51d-aea1f4c77674","block_type":"box","text":"involved.","page_number":55,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"01c5ff5a-fd72-43e2-997e-e737f6b1edd5","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":55,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"afa20493-4c66-4e13-b159-f79885ff6b4d","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":55,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"3cb56868-d3b3-46c7-b285-83da703c409a","block_type":"box","text":"denominated in such currency.","page_number":55,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"1090f028-5902-4e35-9896-236b54ff1f92","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":55,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"496d0d8f-3e63-488b-b414-09d72407e2a0","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":55,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"f4c401a8-e80a-4806-a548-5dfe9962731c","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":55,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"f3c44fdd-2f21-4eb5-be59-c4645dc473b2","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":55,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"ccb324e2-3e39-4514-ab08-355b8291e7f9","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":55,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"758f18a4-9a01-4978-8bfb-c7a29712c7d7","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":55,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"2399b1ee-cd13-4961-804b-f4e09b65f313","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":55,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"fa51eefd-337c-4f1c-80c1-697bf3194660","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":55,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"34f8b3cc-2e4e-4b1b-9de0-fde8352bcf90","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":55,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"88ce6f67-b00d-48b4-b293-8f5e36fc42f4","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":55,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"f11d548d-729f-47e9-89b9-9759751de46a","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":55,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"5ca37b38-1d22-407a-bd09-823a93981b49","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":55,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"3874f2f7-697e-4b2b-9ebb-aedd88a6f50b","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":55,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"37b30494-7079-415c-a99a-7db1d860e241","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":55,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"04a187ed-1d5b-45e3-94bd-9edc9e9f86c4","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":55,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"f8a91b28-4864-4d22-9397-dcb04c10625f","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":55,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"e6fa6bbf-ceab-4158-95c2-e8533fa00320","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":55,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"f86f297c-f50e-4bbc-b687-045aefc6d5f7","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":55,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"fee30721-fef8-4810-b72c-fcb8f18f98b1","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":55,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"a8abb9cb-3e8c-4ef0-ab20-7b3e5501113b","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":55,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"c979729f-2549-49b0-ae41-aa50de4f65b0","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":55,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"2a669f12-2108-4085-87c2-be417c013b9f","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":55,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"90ef1db4-2c2f-465c-9eee-bf94fbf503bc","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":55,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"e9040953-fc2c-410a-b130-62fef85a1fd7","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":55,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"f42b30e0-10a1-40cb-9cbd-781692720c24","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":55,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"f2a33cbd-c541-4a87-86b3-e893d7856873","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":55,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"8a700846-5210-49a5-900c-e1ae7ece0066","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":55,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"f4ee7055-c182-402e-b4f3-22dfb0d15877","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":55,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"7030971a-9964-410e-8e77-70b113181071","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":55,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"9544a0a6-9049-4fd2-a575-9d1a5ba79fd6","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":55,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"ac8b6207-40cb-400e-ba9e-74fbcd22beeb","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":55,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"b8f95ed1-e0b8-4bbf-8493-b513d15d44c2","block_type":"box","text":"II-24","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"919a6b03-d833-4e11-b8d7-cffcdd779150","block_type":"box","text":"NM1026U-5978945-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8bb98046-4cbe-4b53-b3a2-135f9b7d11ee","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":56,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"a9feaf13-9599-44c1-aca9-d7d46ae90d64","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":56,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"265cfc98-efbd-4108-a597-6695d2c3bae7","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":56,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"9f810580-90ea-4020-ad1c-a1066f66b060","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":56,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"f258238e-98e0-47ea-8ba7-8be75db1800e","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":56,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"d26328c1-aba8-4b80-9f31-26efc950f418","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":56,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"0feaa459-8da1-45e2-bf23-004d9fe6b3fa","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":56,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"b13e74c7-6df1-4aff-987f-7ff43ddbc8ca","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":56,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"2af63a78-0f90-4e1e-a3a4-351d9092670a","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":56,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"359b46b6-b3ef-4b2a-823e-a415c7838f60","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":56,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"b200a07e-83f3-4250-892a-2eb75623e367","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":56,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"a8773e93-736c-409a-ac44-7af062b9f37c","block_type":"box","text":"traded.","page_number":56,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"47383b97-db55-4514-b061-943ea8c56258","block_type":"box","text":"Currency Futures.","page_number":56,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"b87c3272-501b-4b57-bb87-bc3f3d2e98ee","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":56,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"570eaa5f-e9c2-4168-b6e3-eaebf9ae738b","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":56,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"ba175322-ad8f-4902-871a-2f5e1c66e372","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":56,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"0c1475bf-dec1-4b0b-803b-5d8e8c5b73d4","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":56,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"d9a7c10d-cf6a-41f9-9972-4cf9302d07e4","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":56,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"d3525f80-2870-4471-ab93-d99fdd9cfe86","block_type":"box","text":"Currency Options.","page_number":56,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"08704f5e-7d3a-4188-9e0a-f6b7fbd177cf","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":56,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"6a524e6f-1796-45f4-8d44-df24b19039f3","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":56,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"8f07ed23-143c-42a5-8c56-bf52e7881c06","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":56,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"aad44e0d-ab4b-42a6-9316-90adc06f9ff2","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":56,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"59a1a226-92b1-4390-91f7-e904406fc3e1","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":56,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"58db861d-9408-4b6a-b4ca-aabf6b289b1e","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":56,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"d6da4e61-795d-4149-a73b-137020793608","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":56,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"744ad906-e649-4449-9b28-e77efe0a15be","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":56,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"6da5fdd8-73c4-4ab8-848a-fbdc74a48688","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":56,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"ad6f1e72-4f53-483d-8e1e-72da432408bb","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":56,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"c4995ecb-6d61-4e7e-a5d5-a9f9a50836d2","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":56,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"c00580c8-75af-4207-a0cc-8779df3a64b8","block_type":"box","text":"Currency Swaps.","page_number":56,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"1cfb394a-9fdf-4c0e-96fb-06469e442b52","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":56,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"d182ffcc-b698-415f-a1c8-42dd94f076a5","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":56,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"ba5bf09a-e0bd-4d2c-9a71-0f997cf30156","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":56,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"b88b8902-4c05-42f7-a5bd-8e6190e14647","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":56,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"a51ae841-6541-4e73-b844-1e589b5de4b1","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":56,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"eadddfd3-8517-4817-98d0-dc6af1d76b5e","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":56,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"10291235-9ef8-4fea-be8a-7d3f3e2652bb","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":56,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"cffc4223-fec8-44e0-ba26-18bf9c75790e","block_type":"box","text":"Distressed Securities.","page_number":56,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"ce3f3c6d-7e63-4f42-97a4-1936e181ed34","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":56,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"35531dcf-a062-42c4-9dca-01cf75811e6a","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":56,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"9f4b066d-d1c3-4563-af93-4fde5b7a4e9e","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":56,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"73efe4f3-4b51-4413-bd80-18cd9690a259","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":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"b65c0b6b-248a-4038-81ea-d8d2e66de262","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":56,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"176b12d3-677b-4baf-bfcf-17b070b814b7","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":56,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"717aca94-e2ca-46ee-8e93-e46b6d46acd8","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":56,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"324fe3cf-ba9a-4540-bee0-c124fbbd3fda","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":56,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"76dd22f8-a715-4611-8fe5-649f3994a367","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":56,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"3fb7f20a-ef72-4aee-a01f-054814733bc0","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":56,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"22fc20ea-d585-4397-a3c6-1bc9eda1ba67","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":56,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"deb3c532-91d0-48bb-b4a4-ca6ef8e5c5a1","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":56,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"f4ba6358-e6e0-40ce-b55f-5cfc38ae2b03","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":56,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"307f9ee2-c055-447f-9c8e-0682eced3371","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":56,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"54537050-fc3b-4a92-9682-b61da183a460","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":56,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"3b159d2b-3f84-4677-86cc-ddefcdcc533e","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":56,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"56223495-7f30-41d7-9b1e-680076ca3315","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":56,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"847076db-bfca-47c0-9e44-460a3c1e2ad2","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":56,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"9893d9cb-6134-47d6-9c2b-08a66a4ce4ab","block_type":"box","text":"satisfied (","page_number":56,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"a1b547e8-4e79-4851-aade-bc3c4f75854b","block_type":"box","text":"e.g.","page_number":56,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"df2d8182-0bef-4122-ae7d-c9630933cefb","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":56,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"ff159f5d-1dd7-4674-a267-a9332560cb40","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":56,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"04d8a439-b943-4015-9323-cb005ae471d6","block_type":"box","text":"II-25","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6fd0f928-fdc9-46cf-bc01-0dc192c7da7d","block_type":"box","text":"NM1026U-5978945-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ff99bb16-20f9-4f8c-959f-3197094538f1","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":57,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"9b121611-61df-4294-a284-a439b1e1c5f0","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":57,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"996e0d33-1a4e-439d-999a-aec981cf20e3","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":57,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"9b20d946-d06c-497f-bf80-c3f09fe4d116","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":57,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"60211ec3-d525-4c15-9085-467f6356e8ab","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":57,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"4053a142-c88b-48e4-9992-5c0e8930d4c2","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":57,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"64eafcbe-ad04-4c9a-9299-59923fda6bd1","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":57,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"d0f0bfa1-cf4f-4235-a75f-aeca493e92e8","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":57,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"e91e1c4e-7a36-46b2-8c09-898e6058007f","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":57,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"d4a6b310-dbb1-460b-bd82-8aad42e715e1","block_type":"box","text":"affairs.","page_number":57,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"1d51f239-ecc3-471a-bb80-76e0ccedf07d","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":57,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"26899eae-88f9-4576-9304-341912f5f0ce","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":57,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"96839c35-bbe1-4736-9b95-8208e4f35fc5","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":57,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"b220e5cd-55a7-4850-81cf-e8995dd722b6","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":57,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"e9cde0ff-dd6f-4481-9952-f74b3b73cdc1","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":57,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"ad9e5fe6-9596-4c88-8445-65c319e0696d","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":57,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"d47c91e0-1559-4586-a29a-a6edd1d28a19","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":57,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"762be009-7381-4c13-b951-1a19ed4dd6af","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":57,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"6ee8f31a-bbe4-423b-a1be-394dc483eee7","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":57,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"673af662-7ecb-4c70-a5d4-d2463d43c2f7","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":57,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"5abd48f2-5660-4058-8505-e36b2726d566","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":57,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"052cf063-0d79-4466-b30e-f228f338535a","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":57,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"4e0f2bb0-054e-4c03-bd7d-b4612a704afa","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":57,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"625fd650-a075-4076-9251-9c8fbe8a57fe","block_type":"box","text":"Equity Securities.","page_number":57,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"282a4e82-82af-4d4a-b195-08a8e0722a69","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":57,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"a94485a6-8a79-41ab-a78d-b2d09b0278e3","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":57,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"a47168cf-d230-455f-b67f-3449b22accf4","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":57,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"93401ad3-684b-46b8-98ae-1f6ad0f42eb5","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":57,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"9a6afa87-a85e-496a-a3a4-9ee0fc6178a0","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":57,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"93b43fde-4e27-48c0-a173-86e5fab8bda6","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":57,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"05e1be59-85c8-444c-9f2d-41c227634363","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":57,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"dd136001-2681-4b30-8844-26625833c20d","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":57,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"d01ee26e-e915-443c-8c84-16ce43101bee","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":57,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"2dd5d3b2-a851-474f-a83c-d3a6d71f5969","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":57,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"b3fc2e7d-6e72-4c0a-9c95-49faadcd78f5","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":57,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"add16de5-f8bf-4682-ac99-120101bacfc4","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":57,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"4c0b2124-91e3-46ac-b6dd-419a4fe5c2c4","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":57,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"b77f0385-c0b6-4e66-99ee-3865715fdf7b","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":57,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"e0ef7223-556b-4a31-b987-12404049f1e8","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":57,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"53ca5416-7852-4581-834d-b8eef56fef9f","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":57,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"f4fe6860-d9b7-47a3-b582-ab6a3aa501dc","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":57,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"a25553bf-42e3-4cbf-b735-aba7b1823c16","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":57,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"c77feb69-108c-4977-b448-f54e9029aca4","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":57,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"07a3ea02-77a1-4f99-b09f-15225f595f2b","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":57,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"a9faad92-f7ac-460a-b4d9-00976013f7ed","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":57,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"21f47a18-ec43-4a94-bec8-0c8dc4947b27","block_type":"box","text":"initial public offering.","page_number":57,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"5fc129e0-3187-4370-a924-9e66fbab6f61","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":57,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"aa5199d6-e846-419e-94c0-d313bf38b054","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":57,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"881b0a46-268c-4b7c-9e06-81b4eec3cbe6","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":57,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"f850d909-0df5-447b-afe6-6763dcf69f49","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":57,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"0fe5f837-10cb-4e3f-acbb-3e954834e491","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":57,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"8f69c175-c468-4700-bd74-0e2e25820a68","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":57,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"9d122b95-666e-479d-9505-150b9a41a04e","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":57,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"f65e031d-09cd-4fd7-b842-d30cf3b29df0","block_type":"box","text":"more established companies.","page_number":57,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"84eb1187-4f16-4d28-8dd1-11d32ddb50ac","block_type":"box","text":"II-26","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"151784a8-afd8-44d3-8ad2-ac80ab6d3d07","block_type":"box","text":"NM1026U-5978945-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5896bc16-fa4d-42ee-94b8-de1b769a73c2","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":58,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"3e91c702-267d-4d91-8dc5-82f97bfe18fc","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":58,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"a84075f8-56b6-45c1-a6e2-0749c55154ad","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":58,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"49bba8ba-0d38-4b22-b327-95fa8bd9d0dd","block_type":"box","text":"below.","page_number":58,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"3f6771bb-cea5-438a-83f0-cbbfbc30a850","block_type":"box","text":"Real Estate-Related Securities.","page_number":58,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"1a15162d-c6a3-41fc-9e5b-602d1de564b8","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":58,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"3abd6bb8-c6f7-47f6-90e4-00973304379a","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":58,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"770ee03e-6305-4e7f-b134-cf9446b324af","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":58,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"2d41a3f4-e30d-4eb2-bc3a-51cc10bf4adf","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":58,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"366ea7d0-8897-4f5c-8582-a765757da61d","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":58,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"3083b13e-273e-4094-8f79-c6b95a1f0ca8","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":58,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"a3e587a6-c268-4fc7-b550-bc20f3287e94","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":58,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"bd38a04a-743b-4685-90ab-a7beb277b570","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":58,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"0e3f0677-2dae-4db2-9b07-590a2af8c88c","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":58,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"f73f334a-bc66-488c-aa90-542a6364c95f","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":58,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"8bbfe2ca-f549-4b63-b5c9-2c9dc5cd328e","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":58,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"44bb3cd1-da13-452c-9d74-203782ec4dda","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":58,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"65773470-f231-46b9-a01f-4d2fcc4c815d","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":58,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"d5482a1b-b129-4adb-81ae-e9962f06338a","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":58,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"30a10e73-4094-4502-94a7-1bd8fcf098fa","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":58,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"81a3ac6a-f947-4c36-841f-81f724444d3b","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":58,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"ba1732c5-b0ea-4f75-8dc4-d4eb95ac0eda","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":58,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"cda0dfc7-4d75-42f0-a399-902f88bc83b1","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":58,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"622483e4-5a01-4cc5-8bf2-bbe604283c8e","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":58,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"f029610f-6518-4a18-9d76-a4c12e580512","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":58,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"372833a0-9c48-4a0d-a7a5-8de7e55f2d01","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":58,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"081955f8-3dde-45c9-8fcb-e974dac873d6","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":58,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"b59cbb52-0e20-4bd9-860c-7c38e2e10e76","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":58,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"c51c4eec-62ee-4b93-80fd-9e4c527a2c7b","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":58,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"08726b36-991f-474d-813a-cf1811a6663e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":58,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"a6dd753a-0824-4982-ae17-7de1d2219284","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":58,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"006bc838-cf8e-4f5f-8b72-fa82d27fe572","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":58,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"55fd7c6b-322b-43d9-9393-1d181e0afeff","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":58,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"ba545514-7289-4d11-87e2-5844da0e346f","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":58,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"1030bfd8-82ae-4e4d-8baf-85a19ff0154b","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":58,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"10ec5351-2756-4e1b-810f-9eb84f668e86","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":58,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"e0b1b4e7-29ed-4f10-a252-e6548ec5a74e","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":58,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"15c3ca11-1908-463a-8c84-518f2a4c837c","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":58,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"246af089-1e62-4499-a066-75fad70b2c97","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":58,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"e24f7bfc-65e8-4d2a-9296-7650bb31d158","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":58,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"88f7e472-6f1f-4f86-bc38-a6b11e4bfa71","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":58,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"7d6dd741-250e-4345-8f67-f65ba8bbfa93","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":58,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"e06e9b52-2a06-47fa-b5df-0c8024315dca","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":58,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"71f5b4a4-c3c8-4412-a1b0-80702cb15518","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":58,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"dd42dfe4-2037-4f46-8235-6fad9b1d7a37","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":58,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"d997c39b-6ea4-42ba-94cb-b4d2d5c164d9","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":58,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"50fd949e-21b3-47d8-97d3-265dd5c6f93b","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":58,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"a2fa09d3-3709-4f96-bd5f-fb41424b07bb","block_type":"box","text":"cycles.","page_number":58,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"c67ce549-6c57-48d5-8574-a39208d76db6","block_type":"box","text":"Tracking Stocks","page_number":58,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"372891ce-2ad5-4b56-b841-c27899cefd73","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":58,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"a87646cf-b142-44c7-b66c-ccdb50120935","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":58,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"f0988d29-57a5-464c-967e-8e5f665a58cd","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":58,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"1c090dd9-bba3-4e5d-ad1a-403c585113da","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":58,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"102b2e2b-cf35-43e8-83a9-ecb3a85931c3","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":58,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"ee1a52a2-673e-4e75-be42-737221dc55e3","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":58,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"d9c4dbb3-af26-4d49-8c8b-02454a70f105","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":58,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"e9f4cee9-9555-46d7-abd5-d6a1c7995b1e","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":58,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"b9cd7bb6-691c-41fa-bbda-be88d81d221f","block_type":"box","text":"II-27","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22c69dd4-2851-4977-a3e2-ee74619a4b67","block_type":"box","text":"NM1026U-5978945-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5394581b-7beb-4057-93cb-31a045bcf740","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":59,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"abf41246-0262-49d0-8c29-95b27c70e6e0","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":59,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"da282c7c-f001-4c03-a753-6956e7708596","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":59,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"9e766366-fd13-4f8d-bbc8-5adbe15fcfae","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":59,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"40e63560-7571-4793-9c8a-4eabc00787d0","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":59,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"60480598-069d-4fbd-b7d5-cf8ff70903f7","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":59,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"d9570ddb-196a-42ab-a3ec-9e62f1a0af17","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":59,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"cc71954e-8d8e-4300-ab6e-84022ac7985d","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":59,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"497ba1f3-e5f4-4cdc-8c32-04c888e0641e","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":59,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"fd0a5a03-6715-421d-a55b-04ef6b37d579","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":59,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"c1e3e768-5595-483d-a4b7-63e1450dbc98","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":59,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"99e0452f-26c3-4c9d-8ba4-1cfecfb10299","block_type":"box","text":"ETN.","page_number":59,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"743f7796-c4c9-48e9-8071-b7fbdd4b6bdc","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":59,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"b58cf7bb-e9b3-4575-a2df-9d41f624ef3b","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":59,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"3a9d159f-a264-473e-84be-a40d27f4fc1b","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":59,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"be698bde-e82f-4307-bec1-85d4d121aaf7","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":59,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"9ab3ff1d-aea3-4c13-a109-3a9b0e11ebd2","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":59,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"57918937-b75e-4abc-b821-172dbcc110eb","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":59,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"b8edbaec-7180-41a6-82fe-7f4db67cbb74","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":59,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"7d76fc5c-b04b-4521-babc-dd9b0bb19c76","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":59,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"64058d77-7a11-47ef-bdec-0848e30b13e3","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":59,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"a3ca363b-248d-4266-bd1d-46314b1e93f4","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":59,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"e6937541-625e-4171-9a90-7744c754f628","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":59,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"a888636e-3ac7-45e8-b5d7-33acc92b87be","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":59,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"b606e606-76c1-45a0-a178-48d8a5583e81","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":59,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"ec6ffb98-1450-4da0-b918-2f730c074909","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":59,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"46727aa3-71f1-49ef-8a84-dc53c3d7652d","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":59,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"736f998f-eada-454a-a631-be94beaac2ec","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":59,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"71c5b92a-42e8-430e-a1a7-6e9923b2ef55","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":59,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"de5db85e-4b30-4e6b-9388-7c8ac60d6904","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":59,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"9833fed4-14a6-493f-8ece-bf31c140e9a2","block_type":"box","text":"Foreign Investments.","page_number":59,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"8c5471c4-306d-48c6-b0a8-6a21afb32fe5","block_type":"box","text":"Foreign Investment Risks.","page_number":59,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"e2c5245e-c5fa-4e54-9373-733c1c588796","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":59,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"9b90ef7e-b67f-4808-8288-253cc6fe66be","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":59,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"40e6c06c-c841-4a75-ac5e-0c2e859e6d22","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":59,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"3109e449-7105-4b0f-861c-7ec5c147ccf6","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":59,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"e3ace3dc-7f92-44c4-88a6-437ce86022fd","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":59,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"2f978862-c68b-48b7-afd5-386599f714f2","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":59,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"c4f13d96-c0e0-4369-b9e0-67c46fd58099","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":59,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"85e74092-1e3b-468e-9a43-b02bf04d0687","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":59,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"0825b66f-f905-4f6d-a321-fc5104e31eb5","block_type":"box","text":"benchmark index.","page_number":59,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"5d4032fd-dbc6-41cb-b394-61858608a179","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":59,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"0a97567a-4ce2-4f04-850d-17a5d976b5c7","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":59,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"19f54484-782b-4342-bc3e-b900a62c0c06","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":59,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"1c6ac379-b932-4a2e-b1a3-888db91ca54d","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":59,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"7f894f3b-51b6-425d-a12f-2fabccfb14ff","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":59,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"7a1330ba-aaad-4902-a6f7-6f8ce36c0d44","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":59,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"b48dd8c1-65ca-489c-aa29-fef026484538","block_type":"box","text":"securities and zero-coupon securities.","page_number":59,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"7e225822-ea0a-4de1-915c-9865c9a9c69d","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":59,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"e41bcfe5-7eef-4eb1-ab93-e0fb65e802f4","block_type":"box","text":"taxes.","page_number":59,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"ed86951b-9df2-444f-bed2-230c9a57c1cc","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":59,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"019dc686-d2fb-4783-9c53-46a7c1a698e0","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":59,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"b543d4f3-1cfb-4baa-9ce5-c30af9097c3b","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":59,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"2bddb4ca-4f65-4025-8b70-1ca0362dc0f8","block_type":"box","text":"II-28","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d2cc3e5-e1de-4b88-9d9f-8dc2fbba7a4e","block_type":"box","text":"NM1026U-5978945-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fc5850e3-3b1e-4008-9011-dc84fc6d351e","block_type":"box","text":"underlying security (","page_number":60,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"0e7c4cb6-0b9f-4800-afd1-4f5543032ff8","block_type":"box","text":"i.e.","page_number":60,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"b1fb473c-3da5-4929-83b4-2003e1932a0c","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":60,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"b3360f3c-553b-42cb-8350-357765c9e644","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":60,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"2474cba6-424f-4f5a-a5bf-4cf644c503c8","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":60,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"04335bed-8629-49e5-a63e-3bc253becdad","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":60,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"c0c2639c-b260-4425-a1f0-024e4c567ebb","block_type":"box","text":"Foreign Market Risk.","page_number":60,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"e5d17e34-e5f7-48b8-b606-d91325d07780","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":60,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"298df23e-4d57-43d4-9c75-ad34ec1a59e4","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":60,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"52fdfea2-eb3f-4832-8853-a5adfa7bf4d7","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":60,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"f46053a1-f07f-411e-bcdf-fb7076628d4d","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":60,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"a2e36a6c-e53e-478c-922a-cef2142be2dc","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":60,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"51394a95-af47-4976-ada4-cb6f59d133c2","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":60,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"9988f831-df26-4bf7-9030-b15b2e1706a9","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":60,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"5a7777b3-9905-410c-ab67-48a71f82c3d9","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":60,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"ba1294d7-aef8-47ac-a17a-4e3308b69cfe","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":60,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"4c7a99e6-5e11-47d6-93a2-ceafcfc06190","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":60,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"f4bb397c-4b91-4955-a3e2-97f0548d429b","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":60,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"1256392e-2226-413d-85ba-23e64cd67f3e","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":60,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"f613ce1e-5247-40fd-8136-50b3dd5fa4ac","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":60,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"53556ea5-b29e-4e49-b519-c852bdc59b81","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":60,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"c8c7dba8-1878-4ff3-b104-db33d4fa900c","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":60,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"6a7dc0e9-e08a-47a5-b213-cd1455361284","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":60,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"945b5ed5-2701-428a-8f43-28414f4da5aa","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":60,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"de368da9-57a9-41f8-8a17-5ea196f6e6e9","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":60,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"1254aab5-f6ef-4b4e-8581-6d16d797e504","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":60,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"bcaad1a7-82f1-460f-a148-e74c2274b075","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":60,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"71146ffc-e8a0-4dce-b4a1-e89062020ea7","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":60,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"1da27fd1-20f3-4a69-a306-da4932d85d00","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":60,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"a3bc95f0-66a9-4656-bc8f-027ccd63448c","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":60,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"108b0f6d-006c-4c71-a55c-bfa459d7c261","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":60,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"c580bb67-42ba-4761-a443-c0090a55de71","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":60,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"51947b30-b95e-4268-9858-dd86bf7b4def","block_type":"box","text":"Fund’s operations.","page_number":60,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"9435216a-0ecc-48e4-b80d-6e8112dff10f","block_type":"box","text":"Foreign Economy Risk.","page_number":60,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"191a109c-d5c7-43e2-910b-4229babd4815","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":60,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"84ce1763-1ee8-42a4-860b-1a9f394534d4","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":60,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"4adf614a-803b-4b5e-9500-20c801603fe7","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":60,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"3bea69cd-e086-4f0b-b88d-b1bb6c8a544f","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":60,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"2128393a-b37e-41c3-8039-bd44d292ff16","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":60,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"4802bee3-2c00-499a-baf0-9cd23208b0a7","block_type":"box","text":"measures.","page_number":60,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"23d0c0dd-7756-43cc-b30b-57c60c374ceb","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":60,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"4e4311b6-5d62-43c6-b5a3-125d4b36f6ce","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":60,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"f5b449a1-f4ba-4d0e-92e1-03f249fe0806","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":60,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"87a1cd13-1a9a-45ed-96a4-73e496ebe1e2","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":60,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"4fa9f93a-e7b8-4f7e-a30f-3f951ea8bd99","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":60,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"8cb0e297-ae74-4c2d-b3e2-63de6e28cf88","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":60,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"8f7dc08c-4f25-4edd-a39c-62fd62c8723d","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":60,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"99aece5f-273e-441a-b650-f22e2e61af1b","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":60,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"693942fe-5caf-4764-8873-6627e0ef479e","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":60,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"5ea816d3-8d39-4707-976e-ec4ee0d09a3b","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":60,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"3eca4e7a-454b-4383-a4ba-c416bf58491d","block_type":"box","text":"United States or abroad.","page_number":60,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"a00acde2-5366-4fdf-ab80-a530cc64ae84","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":60,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"e121ec40-02da-4abc-a8fc-d0fa4325f2e7","block_type":"box","text":"Many foreign governments supervise and","page_number":60,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"4c88cf1f-5803-4f53-9094-dd771cf529da","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":60,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"aa6ce6e9-f4e1-46bf-8214-90fe2f737e71","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":60,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"1352497f-3a41-4186-8ad4-38aed757f487","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":60,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"5d7f0247-483b-4d45-923a-188089e2e532","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":60,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"43ec9616-efe1-4b50-86e4-dac29da2900a","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":60,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"d54a7fea-6d04-4aea-8bf5-1b604a41aae6","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":60,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"54b5757f-9f86-4777-952a-bca694ec060c","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":60,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"20c1e58c-72f4-421e-b9e5-befeb03f1219","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":60,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"0fd10721-4fc1-4aca-9bdc-41d1c39e9e40","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":60,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"0e637a82-6d14-420d-b09c-9f32b0427fdc","block_type":"box","text":"II-29","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f40970b-7de5-4f92-9a89-52acdeb6ae72","block_type":"box","text":"NM1026U-5978945-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1775cff3-8494-41e3-beae-08fa9c785719","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":61,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"32f3146c-7e13-4aa7-a0a9-e93a48431189","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":61,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"1e244291-355e-480d-a688-b58064a1b4b4","block_type":"box","text":"investments.","page_number":61,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"5278d896-55b4-454d-afe3-4b9bc78c1752","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":61,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"69737659-e113-4b7c-a039-573198a6d8e1","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":61,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"e45c08ea-53c7-4636-a0f3-5fa0f52b04c0","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":61,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"7a9fea6e-20c7-4bdd-a7ee-17421f435c78","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":61,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"41e6e2c0-d22b-4ce4-bdfd-022d0edf7e14","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":61,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"58c464d8-2309-4d12-85dd-f17989b40dbf","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":61,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"7aab0f51-3bf9-40d0-afbc-7821b523c0e0","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":61,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"8c8d67e9-031a-463b-a5a3-2734fd938d3d","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":61,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"3eca1122-1423-4be5-9934-fb6e4e74e133","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":61,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"8ce4512b-767e-4048-9f6e-524b9cbf8c4a","block_type":"box","text":"States.","page_number":61,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"3661cb69-0624-46d1-8092-06ae01750416","block_type":"box","text":"Publicly Available Information.","page_number":61,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"a386a5b9-dc12-4929-be40-beac157a60b5","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":61,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"89ddca1b-298e-4e45-9425-71803e32890a","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":61,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"c13da120-d6a7-483a-8d59-7eb1ce4d359a","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":61,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"c0cbaa15-cfea-4a53-a02d-f2258a7a082d","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":61,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"6e952a06-41ba-4de8-84a0-0428facee4da","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":61,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"a279c414-1414-4072-9259-560576b1bfa8","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":61,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"397f8dbc-8c0d-4186-83e8-1a3b72c6af73","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":61,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"131d3c81-6a91-443e-8080-5f5e028a2105","block_type":"box","text":"United States.","page_number":61,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"597da26f-a004-49fc-bd37-b690a966e320","block_type":"box","text":"Settlement Risk.","page_number":61,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"26c6fc94-4b54-4ecb-a813-2f0c740e73bb","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":61,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"5165d5aa-d313-4352-8f3a-49fa04952994","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":61,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"3a007a36-5722-4218-9c7e-0de216b21441","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":61,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"b4188a88-322a-428a-aee9-b16dbccfb91c","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":61,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"7d9c5772-5b0e-432d-8fcd-0f2d13d2b2f9","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":61,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"e1fdd68c-8f55-4316-8f09-35afd9e65e23","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":61,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"f746260f-4ecb-4945-af38-774a07897d6d","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":61,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"6aa879f2-77fc-4b36-8eaa-b600a48f5789","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":61,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"e1bc7c14-e571-4020-b49e-fe01de36523d","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":61,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"6c8856f7-d7d7-4d6a-bd9a-84a69261f617","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":61,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"f20736a6-57ae-49a3-8672-ff091d8de5a1","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":61,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"a3abadf1-e37f-4ad0-8c28-47181938c2d0","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":61,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"a0484d51-76c6-4595-834a-268c181419f0","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":61,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"63008b9c-60a4-4b22-95e4-37654d6584fa","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":61,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"2ea614a8-6e85-4fd3-91d0-ae77d34aa0e3","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":61,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"327acfd8-f426-4679-aa42-b4bc0bbe3f7b","block_type":"box","text":"Sovereign Debt.","page_number":61,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"e785f4aa-c097-4db1-83d6-561681da7f7d","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":61,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"8ae65484-30db-4882-bcc8-d0edb48d17ba","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":61,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"cd9158a0-5413-4a24-8d2f-ae0f89be6748","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":61,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"8dd19fac-f252-4c6d-bff4-7b42ae18ed26","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":61,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"dbddc745-1a6f-46c3-adb5-83ef3669b36f","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":61,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"17d674ac-80bb-460d-988f-7b0f286ca048","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":61,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"d6a78801-f042-4faa-a183-b2db6ea708ee","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":61,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"926596bb-ded7-4b25-9f08-af0679adae9c","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":61,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"0bc24c14-0d47-47db-a408-821b901e79ed","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":61,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"06c76e68-e1c5-43b2-8834-fab5caa7064d","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":61,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"a3ff612a-ae87-4725-a99f-e53cb62fee2e","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":61,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"acbe786a-3681-44fb-9945-3b95b6fe952a","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":61,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"10a5e40c-78b4-4913-a6e2-b55650f02801","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":61,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"6cab7b67-edac-4eaf-915b-c5e887d6b305","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":61,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"86fe66bf-23d6-4e06-8121-41d17bad5176","block_type":"box","text":"debt.","page_number":61,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"2d209440-c8d4-44dd-8278-a89e52ed63ae","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":61,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"cac1ba70-89d5-4252-ba6c-07bb60fc45ae","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":61,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"5545bb84-0e7d-4672-b9e7-aa3a6399db43","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":61,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"3b5c6863-600c-4dc5-8b74-0177fc326b57","block_type":"box","text":"II-30","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57eba614-0e0f-4b8e-9453-55805a59dca8","block_type":"box","text":"NM1026U-5978945-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f3738cb7-2d05-4a9b-a3b6-6f4ca197a438","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":62,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"8d947e16-85ae-4e08-8e97-2a455c686e2c","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":62,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"c4063938-caf4-4bd6-bfd0-5771a543b7e0","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":62,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"4d8ed9c6-1cf7-4073-9e0c-ce2e9fd59c45","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":62,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"ac3bbb96-b6e4-4568-9e04-b39ca28d2fed","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":62,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"9edd848d-6a45-4171-8db0-f6bd3c260711","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":62,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"8517e930-1328-412e-bdde-08f6aef74873","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":62,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"c783ee9d-20ab-43ef-8184-87ff1a3e32e9","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":62,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"d15cc4a6-a79a-40e2-ab5f-e93b905f46d9","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":62,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"96d39945-41f8-4a07-bcc3-02be0f58dd21","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":62,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"0a8597d5-ebfb-47b0-90ab-e4db183739f3","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":62,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"3ec4661b-3ee0-4b84-8d86-f50b102a1836","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":62,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"1e2a74fb-e533-44f7-8610-939f4c9ad61d","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":62,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"1620d0a1-bafc-4d3b-b960-cb9e048b60f6","block_type":"box","text":"in the Fund’s net asset value.","page_number":62,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"541be44f-9cc3-4549-aa84-e9c71123369d","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":62,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"eb932911-0d01-4e86-b646-7f36f7ba1158","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":62,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"c18d7ad8-652e-4009-a7cc-ed04d5dfd664","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":62,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"7b914f3c-b5f8-49b1-93b1-36f4a4d64180","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":62,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"a3794203-be55-4360-bd66-6e0cabccad77","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":62,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"b01a63d4-2f37-45d2-bbbd-aa9e7521075d","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":62,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"627d5661-1ed6-454e-9b5a-7d199c12239b","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":62,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"43e62df8-4d24-466d-a2a7-79406597a6e9","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":62,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"55497f4b-e563-44ba-b76f-843b8759493d","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":62,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"00edab65-ab8d-4b61-9a24-9c5a92ba129e","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":62,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"6be0ccb0-799c-4bc7-a2c2-fdeb4549bf62","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":62,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"418f1fd1-09ea-42f4-80d3-c3345e60ddf6","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":62,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"6da6374d-e4ef-432e-8a05-4da5a0659cae","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":62,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"0d17d687-73b2-4a3b-a646-158679c25593","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":62,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"42fc3518-acb6-4471-8bbb-7d7a66e2dc4c","block_type":"box","text":"Fund may invest.","page_number":62,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"0fb60c86-e964-452f-92ee-b8bd684e17bc","block_type":"box","text":"Funding Agreements.","page_number":62,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"2481c5b9-5d3a-4cea-a3e9-9548e14a32f5","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":62,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"03c8381c-798e-4296-b93f-9c3826a68141","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":62,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"deb4e0b2-5f49-4412-93da-2efeb64f2ce3","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":62,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"b3594c5e-e290-4305-8b45-87ee4b6d158c","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":62,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"b78e12d8-c5fc-47a0-bed6-b69a78c8fa52","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":62,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"a630b20c-8762-45fc-8d17-9c9799d480c8","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":62,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"0b66444f-3ae5-4be1-b58b-21db284b6e07","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":62,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"041e87e3-f470-4c0b-b293-5ffc9e98011d","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":62,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"9d3fb2fc-aed8-44fa-a329-f7d52f6cbfa2","block_type":"box","text":"Guarantees.","page_number":62,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"d33068e4-cb45-4ddb-a65f-91887df43cbd","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":62,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"e5abb8c9-37a5-424a-bf4a-43464c2207b3","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":62,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"39e5261c-abad-4d31-93c5-697b3dcf2fc7","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":62,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"1aa6bb60-57ae-47a3-8786-b49833d3e86a","block_type":"box","text":"Illiquid Investments.","page_number":62,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"6f2fbf37-daf9-4980-9641-1df9287da5d8","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":62,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"3b122547-735e-4a33-8005-6b8bb7df63bc","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":62,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"6cf10022-8f22-4d5b-ab91-0967d7a97fd4","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":62,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"6ac4f319-800f-4c86-a15a-036d59e3c090","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":62,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"eeae156e-725f-41f3-b20b-e7fc277b9367","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":62,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"3138fa05-fd86-47aa-9ef5-3469140b9618","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":62,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"1b22240c-ed8e-4169-bc95-44810b89b319","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":62,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"37c9e45b-0724-4c01-aa83-77a6a4f6de09","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":62,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"ae996c68-74c6-4f58-9e78-ed583c8b4d93","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":62,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"fb544d2e-79b3-419f-b62b-b86f92f3b15d","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":62,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"d1d75450-a3e2-457f-b346-e5740fc17884","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":62,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"fc3b467b-db0b-4421-98bb-44d079cdf9ae","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":62,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"9c6ca7cf-308f-4242-8851-36bd2e7c009c","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":62,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"ed06ab32-121e-48dd-9db3-d0457ccf626a","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":62,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"bd953898-9b18-4148-ae8d-d8b66c82a88d","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":62,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"14be25cd-a9ee-4e75-9f16-e7de0c998919","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":62,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"dd16339f-e93c-4265-9dfe-41ee2aba5433","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":62,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"158f54aa-56ba-441a-9b8d-9863aecec59c","block_type":"box","text":"II-31","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"01bc7e24-de92-4f40-be8f-43c14c615ff9","block_type":"box","text":"NM1026U-5978945-62/232","page_number":62,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4de16158-8ea6-432e-b627-ce802b744ba6","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":63,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"e8e5a543-7e79-42eb-a3a6-a2d065c4bcfb","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":63,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"5b003693-4ef5-4cd8-b394-aee2061820ad","block_type":"box","text":"Index Funds.","page_number":63,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"83194d13-598d-4a6e-b2bb-d23bd303994f","block_type":"box","text":"Cash Flows; Expenses.","page_number":63,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"3ad21c66-8557-42fb-a7c3-a0452b7087ba","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":63,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"652fb232-e1c2-40bd-97a5-e9f931f20925","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":63,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"20104ec2-00cd-4b58-aaa0-837467b0ef44","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":63,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"805b735a-48df-4c61-8cab-a3d54dbb12f0","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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Finally, since each Fund seeks to","page_number":63,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"e02230a3-c155-4def-ad06-a327deb528ff","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":63,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"7631610b-349a-42a2-9205-8767d43a1bb2","block_type":"box","text":"particular security as an investment.","page_number":63,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"e2540e19-ac0a-47bb-bfe5-7daf9fa5e915","block_type":"box","text":"Tracking Error Risk","page_number":63,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"56aad93a-ff49-4b68-a0f9-8063f095b5c4","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":63,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"47f38208-ce21-4bf2-a80d-9e0c6777158b","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":63,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"bacc0580-9049-47a6-a325-4aaf3540e945","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":63,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"8f74f5ee-6fd6-44c5-bcbb-7a5b0fa34e79","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":63,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"0693f32c-7b06-4da9-a243-9072814b9874","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":63,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"0e320694-97b2-4eac-80fe-3decccc3779f","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":63,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"20e9e586-f8e8-49c4-859a-1da71c21d89f","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":63,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"5f8bf1b5-25e7-4b50-a213-c55ed40d3231","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":63,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"8e8aaca2-7480-4c75-a459-24d7c76c7676","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":63,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"a4c411ab-a1a9-4310-8b72-181075e5cc05","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":63,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"ac557259-5bfd-4fd7-b89e-441dafd88092","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":63,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"ac4c9372-33ec-4338-99f2-d9bf88ee4ea5","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":63,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"051b5349-152f-4261-a884-a9c571bcd4db","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":63,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"b74f1f8f-df01-4825-934e-f86a852a29ff","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":63,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"0fb5fa05-f313-4843-97ab-53a36377e837","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":63,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"fbbf2e48-815c-4613-9e21-ee3adaf70b3f","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":63,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"221e7c89-cdeb-41f9-a669-f7fb0f4419e2","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":63,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"cb7f5963-ca7e-4c54-9776-a5928073bac6","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":63,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"bbef5a40-e79c-4f6c-836d-5474ac26297b","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":63,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"65f57e1a-7b9c-4e91-90fa-2a451c4636bf","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":63,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"0625ff6a-ecb7-49e9-b30c-4601b31ce3ee","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":65,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"aa26307d-5741-4d2d-9964-a824b09e1f34","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":65,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"0abb00ca-336e-46ea-bb6b-6e45ad7ecfb1","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":65,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"0d660e5b-ecbe-496e-a1b7-86ee88c22f4f","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":65,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"98d24a37-87d4-4d5b-8596-adeca901d19d","block_type":"box","text":"completeness, or otherwise.","page_number":65,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"2ef81d49-4639-497d-a491-cd89b22ef745","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":65,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"dfd638d8-73f8-4bd7-8e21-3b4e0c930ade","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":65,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"bd720d9a-a2b4-4cef-b30e-adba746a9696","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":65,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"b2c0498b-c36e-4bb7-aed5-5610bc54d957","block_type":"box","text":"Indexed and Inverse Securities.","page_number":65,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"dfc91917-3319-4001-bdd1-dbbc9916f5ae","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":65,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"2daac081-c3de-46f0-8536-82d462821fe5","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":65,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"7d1df671-c5d5-489e-bd5b-658f580b5ac8","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":65,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"911374ea-d18e-45f7-a8c1-87cdea7f7702","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":65,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"71327893-6a5b-4c58-9432-0387f375d20b","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":65,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"e56db5a9-f441-47a1-9a94-14a87863b441","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":65,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"8de32d50-dbbd-4ef5-aaff-c4d1f90cd488","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":65,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"72de70d9-b6fe-41a7-81ef-8ac0e192c0df","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":65,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"41eb90ec-ddde-44e3-87cf-a3a20a7a243f","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":65,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"3d51dd51-1a25-41de-b14c-8b78826f8df8","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":65,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"85dae3eb-dc15-4dc6-8d4a-d0f3dc0e9597","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":65,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"c3d54d63-1ec0-49a9-9538-2b1fefd3c659","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":65,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"8eca3f98-c4cb-4808-9b70-b928aad734bc","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":65,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"c0273869-c475-4afc-a9ec-190d8410b6f0","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":65,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"0bfbc684-c16b-4fc6-9b64-31847930a496","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":65,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"f435b365-2fc8-4e46-b917-51454d1b83ff","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":65,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c7ad0e17-0f0c-4b63-8036-8248fe227cd2","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":65,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"3c321280-5155-4a9d-b1fa-834e30cf43da","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":65,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"5e5dfe46-4f03-48f3-92e7-9cc1a5a40ba6","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":65,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"8569975d-ac66-458b-bf65-55620979b48c","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":65,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"be43a85a-9e8d-42dd-977a-60cc9068e873","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":65,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"e1b0dbd1-b25a-4169-9f73-251aeeaa90cd","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":65,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"8d9c3e2b-c7d6-4d00-93c8-74daf235fe8d","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":65,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"b58f12e0-bce2-4207-896e-382b9d7e5c8b","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":65,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"ff55162f-229d-4004-8e5b-d7da20fdc9fc","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":65,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"379ab3c2-0b91-4c98-af5c-9b92d60e6de7","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":65,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"0d7babe2-c9a1-43f3-bf65-ea20ec992b5d","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":65,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"6e9a9e74-2099-48eb-a95c-0a613c47c452","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":65,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"6b9b7099-7a1a-4ce8-ba87-2eaeb0ea6d78","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":65,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"17636f2e-cb58-4c5f-9920-cf2c4a674bb1","block_type":"box","text":"Inflation Risk.","page_number":65,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"22c787f2-1e79-4464-a2ba-0ea28dbbe638","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":65,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"23353001-3a6a-4896-8db8-316112691d8b","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":65,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"f8207456-c528-4d63-89a7-c787f02567f2","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":65,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"6abf7e55-ce41-4f81-9618-5e2cfcf7bb86","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":65,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"7ed344db-a43a-4763-a809-1f7183bcb892","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":65,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"511cad33-c9a9-43df-b18e-c9d38cb6fb79","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":65,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"96550b0c-97f9-4ee2-9988-d379d95ea242","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":65,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"ec68ea67-182b-4259-afaa-bd797c9aea26","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":65,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"d9c1ab1f-184e-421f-86d8-6614559b080d","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":65,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"a5cb4dde-0276-4885-9b4b-42052fd8c0e3","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":65,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"fd3c0bf7-23ca-4e7c-807e-7e68f9969a0c","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":65,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"54cb2ed4-64d6-4762-a450-292349bd2279","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":65,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"f7ec29c8-ec66-466a-b59c-3dd360c5c8f4","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":65,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"ee5614ef-7a2e-487b-b107-c85ca340c50e","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":65,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"7328d816-8a17-4722-90b7-7e5abe8de685","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":65,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"7274428e-cdff-4237-91fe-739ea5035855","block_type":"box","text":"II-34","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"41cd4549-415f-4e3c-8290-af1b8010fbf0","block_type":"box","text":"NM1026U-5978945-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4c12448c-dabb-4a7d-b598-d5a1bcadb672","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":66,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"79fdeacf-ee78-45ac-bace-ba3d4a8f16a0","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":66,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"9de43a12-b2e5-48d4-a453-3ea5cc980481","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":66,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"8ded3b40-917f-4397-8cf9-d4871eb11400","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":66,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"15f13f41-de0f-499f-94f7-c82a5b92845f","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":66,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"19dde48c-418d-4d78-8639-e72c2fcf37cd","block_type":"box","text":"be available for very limited periods.","page_number":66,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"4846e0e7-6bc3-4eef-960c-4f7dae184972","block_type":"box","text":"Investment in Emerging Markets.","page_number":66,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"ffab428e-ba97-41e5-bff6-bd095e8ac428","block_type":"box","text":"General.","page_number":66,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"cf65705b-0632-4688-9408-c7cee5561e07","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":66,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"c2d7e991-5703-4d6e-9977-19f7a2a3d2c8","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":66,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"2db62edc-34f1-4d36-8625-788adceab307","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":66,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"efac68d6-edb3-45be-9599-05f75e43fa70","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":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"c28e4fd4-3876-457c-bbd4-8df3afbcf9c4","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":66,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"24b81d4e-c119-49c8-b4d0-78c9bd2941cd","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":66,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"44716b5e-6ed3-42b9-8f77-5a5048034891","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":66,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"55dc444d-5b0a-4492-94c8-4d0eb8b082d7","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":66,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"dda0ffee-6fae-4145-b064-b45917b3e383","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":66,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"11c8cd08-fb49-4f28-aa74-9d3bbb885ece","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":66,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"f37d721e-1b2c-44c8-8313-f8cd623cc5ed","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":66,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"b55b94ae-0eab-44b5-aaf6-3d434f23712e","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":66,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"900c95fc-4a81-4345-aa4f-409db78c18ea","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":66,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"9d9cfc76-babc-4d19-a851-a3fb31791b34","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":66,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"27093fc8-36d2-4922-baed-92b544fb8598","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":66,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"5dc7a3bf-cfba-44fd-94c2-1b78f8588b74","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":66,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"293ae6e0-ad7f-4a48-a3e8-1b1b57d1616a","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":66,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"ad722121-4d68-4a59-94d7-f932b01e05ef","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":66,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"27f5adf9-355e-4225-82dd-ecbbbd8b9abb","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":66,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"a10f510b-a0c4-439e-8637-77623de68ec7","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":66,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"3288ec04-4caa-487c-83cc-216c6968a749","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":66,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"0ccc95f8-3460-483f-8e12-003eff870525","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":66,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"887d0074-8cf7-473d-88db-152cc4d17f9f","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":66,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"16379f2b-754d-4db0-bf9a-54bb4f2a02f0","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":66,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"4d81bdb4-4319-4036-ade3-3dc8fca03a6f","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":66,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"b043332f-8189-4031-9024-24bed408c88b","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":66,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"edf7810c-ecf0-45ac-a825-7d4b0550bccb","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":66,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"1efe61f9-2820-418a-a12f-ce676955901b","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":66,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"2845ba30-004d-44fc-8201-79bc68f8c6c5","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":66,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"409a642b-1b32-4f80-bc4e-d3da8d73b963","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":66,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"a9f1d619-9b53-45b9-9ffd-5f04c5ecebb6","block_type":"box","text":"volatile than investments in more established markets.","page_number":66,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"ed5561c0-581c-4681-ba0a-51238546ab7e","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":66,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"3cf8cba8-a4dd-43ff-8219-448707b6828a","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":66,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"c760ba8a-0f92-4d57-86bf-9238e007ed6b","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":66,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"bced3c72-ab41-4bbb-a815-504028147e6c","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":66,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"e1bc01c1-d972-434a-a235-081e9b9ea5b7","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":66,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"51dab9a6-6a66-446d-b4bd-be209d117c78","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":66,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"dbf45f2d-4bc9-4cb6-8de9-5f5c5f247b03","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":66,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"acb08cd7-45d2-4093-93e5-fe09f089fcf7","block_type":"box","text":"acquisition or disposal of securities.","page_number":66,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"b1710fec-d8cc-44a8-9fed-22fac0e08255","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":66,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"03d233e2-2083-43c7-b4a8-d1f20e301ad1","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":66,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"51369a6a-24d4-4cc8-8aac-0ff88bb92dda","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":66,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"2d2470fb-6edf-4e40-b6ad-7772519d42d4","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":66,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"50b2b11d-dc02-47af-906a-2f7d426a7051","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":66,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"f90442c0-9d92-4537-a710-1c2361b1ab94","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":66,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"2fb6d0fa-906a-40b7-b205-31f17065e9d1","block_type":"box","text":"II-35","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d452d02d-b3d9-4796-85d0-6fe06e42453e","block_type":"box","text":"NM1026U-5978945-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ba6c5b4b-09c5-4169-a8a8-4273dd2cd0d2","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":67,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"a6ae7daa-8fae-4c8c-bf26-58b07666cf00","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":67,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"e209f348-b3ed-4dfd-95eb-64d2b1c82dea","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":67,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"be35a010-b495-42de-86d2-4acdabdd3bad","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":67,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"df69d870-7675-4135-b747-b6be933bdc63","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":67,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"fd0cdfad-6238-4c8e-a9ca-d987fad43ece","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":67,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"c5e8507d-2296-4056-a21a-1b8fdac0551f","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":67,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"81fbdbff-0640-4d12-b257-29992fb932ba","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"066a9d35-8a75-4c3b-ae50-35d5f38d609e","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":67,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"3a6b6368-499e-4576-90a2-b4f39acf14d9","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":67,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"507ac165-03e4-4e7d-9e65-0fe3ba5bbdd2","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":67,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"dd24c573-34e5-4eeb-9b3c-28f0801c42d8","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":67,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"f39e8600-4d7c-4ba2-9427-5fd04e8d54e8","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":67,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"a059b95c-345a-4cd0-a6c9-f7e963dd292b","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":67,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"a75b5145-7dbe-49d3-9390-bdc03c57629e","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":67,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"eb592aeb-1087-49f4-bec4-e347c45eef3d","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":67,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"a54f6e65-730e-4ff9-b7a6-e5ef982eb0c1","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"81de6105-1bdd-4852-a4ba-4be944e167fb","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":67,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"68a046a6-b5c9-4dd2-954d-04b624b42779","block_type":"box","text":"performance of the Fund.","page_number":67,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"ab6906cd-0919-4591-9c87-c51b932033b3","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":67,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"202a28ed-9462-4211-ba45-9d56fe200027","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":67,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"95600801-b96d-4fc5-8748-693635699c3f","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":67,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"9645d6ce-66db-45e6-a1b2-754cee854a9a","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":67,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"d4ab0f99-f5a8-43aa-88ab-0e088dfc25fa","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":67,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"78c8e37d-692b-4ef1-b2de-22dd130730b4","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":67,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"934f2215-1286-4e89-bdeb-5d2a89772fce","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":67,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"5ed566ea-f073-4acc-8fbd-8edbceadb2d1","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":67,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"8f78ca8e-7a3c-4aa6-bf8d-43d1488fa30e","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":67,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"cbc35e02-d171-4f6a-8d7f-e12a553e6f38","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":67,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"d07065dd-fe2c-4c99-af74-5073da9ff634","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":67,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"501319ac-0525-439d-a50b-7ef06eee5f10","block_type":"box","text":"affected by a variety of factors.","page_number":67,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"f9dbe604-bebf-4c8f-b4d1-9b16f0299ce7","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":67,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"c9f7b262-5644-4bb6-9193-16ada4d0afd4","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":67,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"09705128-572a-4dd6-aaa0-f5866301323b","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":67,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"bf49de3e-92fb-4857-b98f-f4c81ff5e514","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":67,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"a8ce7c50-f73a-4431-a1d8-4c81ee3b3763","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":67,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"c97c8382-b736-4841-9940-0bb9d4f7702d","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":67,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"6f0848e4-9816-47da-98f5-7577f8bbf7b5","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":67,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"e50b1629-d8a0-4341-b7a6-7f3c25efcbf6","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":67,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"005737eb-8046-4b0f-9de9-9efc0d0a4ebb","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":67,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"a78112dd-0241-4005-af9a-fd2b4acf8dd6","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":67,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"b44f4113-8774-4aa2-8180-2cf4d59dfe6f","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":67,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"a3b509a8-e468-45b4-ac13-8514a4b913bc","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":67,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"fe2584e4-847d-4a44-8237-52d43aefd564","block_type":"box","text":"nations.","page_number":67,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"f299db2a-8601-455f-8c78-9d80bf503a98","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":67,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"e5f6fbb2-447c-438a-a22d-1734451ce5d1","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":67,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"910c71a3-dc34-45a4-b78c-b0b110f23d52","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":67,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"50e09f15-69a4-4320-9947-e59fa87aa98f","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":67,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"b10563dc-e4d7-4f9e-848b-286ca4f0e323","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":67,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"826ba751-b8c2-4419-a06f-2e4b4d39b5d7","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":67,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"e805c0ac-f13b-41f0-9e22-6eb4dfe5bf0e","block_type":"box","text":"market Asia-Pacific companies.","page_number":67,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"baf04232-52ea-40ba-939a-ea1adb55db32","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":67,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"c7d244fd-ece8-4cde-96eb-957d896e6eef","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":67,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"e04505e8-c949-4c7e-9995-3c87faabc4e9","block_type":"box","text":"services for such securities outside such countries.","page_number":67,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"eed4d0cd-34d5-4ec0-8178-38f150b97204","block_type":"box","text":"II-36","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"123c27c4-39b6-41cd-b97f-bb8af5520550","block_type":"box","text":"NM1026U-5978945-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"52266db3-cb7c-46b7-a73a-873a45ff1f6c","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":68,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"8b844c13-4849-4a2d-bd85-3069ba157fa1","block_type":"box","text":"to commercial banks and foreign governments.","page_number":68,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"500c0455-d039-4657-a950-d04ddcddfd98","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":68,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"9cfa9345-65dd-4232-a69b-3b2da2ecfcf0","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":68,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"fa66b96b-5f35-4d8b-a508-2f806875bd8c","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":68,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"63e1e649-e736-48ec-b76d-8e5dccb205ad","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":68,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"942fe707-308d-45f1-86fd-833c2b275392","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":68,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"e24aef9d-520c-4bff-967a-d4eb1245fde0","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":68,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"5cfdb667-bafe-4b05-ae7a-7ad9bc2cbcea","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":68,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"02c8b6f1-bdc2-4225-b0a0-d570a404d4ca","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":68,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"c1735014-9271-439c-b9bb-a62d1756d0d8","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":68,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"25cf2b91-1818-4d51-badc-23fab45ed220","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":68,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"82ebc0c6-12da-4a95-b3e9-676a8838ec8d","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":68,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"c802dc10-12af-4ca7-a3e1-735ee6b2f41e","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":68,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"307ddc5e-0de5-48cd-b8b3-b4a05d85c433","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":68,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"1970133f-643b-4550-82f6-d964d36a35a6","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":68,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"16bfefcc-568e-412a-897b-1d7d7b1ecac1","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":68,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"5e4c6e83-6f23-4c7e-bfd0-13e8adc101d8","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":68,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"a792716b-6d89-42ff-bbd9-8619743c1a9c","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":68,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"9ad1d99c-b40f-4174-b967-0147eaf2ab1e","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":68,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"56cfd086-fd5d-4c13-8043-dc728a0e5cbb","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":68,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"66337e02-c363-4c6f-9a4e-af6d60ad5cb0","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":68,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"04f92cb0-207b-45bc-bb03-27c09a1e78ff","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":68,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"0743ee87-3b56-4f2a-8fd1-d546b33ce71d","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":68,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"1232adcc-2b20-4b01-a499-9ac9fc371d82","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":68,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"45ce1620-9c6b-4dff-bff9-e600702dbef0","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":68,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"c5a5bcac-fd03-4217-bfdc-f1848e4906ba","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":68,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"75b639f1-9c8d-4827-82e4-f5fb2776b363","block_type":"box","text":"investment at that time.","page_number":68,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"5af4676c-8296-4c44-bba6-328867b7fc33","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":68,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"926e9337-dd9d-43aa-806c-3c84a1b79d7e","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":68,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"700c13c8-f1ef-43ca-966d-2d051ba96699","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":68,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"60ff8de6-1226-46a6-9027-4f54b1678515","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":68,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"412509d0-4b63-4b1c-b1aa-f6a544dd30a8","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":68,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"56c6b7f7-c6eb-498a-a0d7-c3c08bc41f67","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":68,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"00abfbf4-0af5-45e6-8ea4-737da64c1fff","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":68,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"116a9bba-092b-48f8-bb9c-505e0bbb852c","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":68,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"6b93c95c-d3b7-4ed2-af29-3ff713297306","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":68,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"6f6ad464-e34c-4a6a-8721-57b302f02301","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":68,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"38de7e0e-f688-4b40-89c7-419cbb47c9d1","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":68,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"d3a7bcbc-42e6-40fe-a72c-c6ff79555298","block_type":"box","text":"government).","page_number":68,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"8f0e4a03-1e70-4808-9304-e56161bd3e07","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":68,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"6e8aa407-5c17-4766-ae27-f73c5935e3e3","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":68,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"f20eb9da-9c5d-49a3-872f-fabf4d04c505","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":68,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"7b1c1937-7a02-485c-ae74-4e05c8b8c433","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":68,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"5aefecdf-f007-4b82-b16e-0659b0761f8c","block_type":"box","text":"foreign banks and other financial institutions.","page_number":68,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"bba749a8-70bd-48ca-a7fd-e7b3725aecee","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":68,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"8ea5f4a3-9067-4cdf-8b5d-88af6f4debf9","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b4ea76ce-65e8-4a4c-a36d-1caced0dc6b8","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":68,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"8726bcfc-0a98-4d04-bb2f-f8a13548608f","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":68,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"e3774bfa-289f-487a-91c9-77ec23a88c91","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":68,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"d449b9c4-956a-4e88-9b47-50019db4171b","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":68,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"dd6ef07f-0c24-4861-a583-c4cc49bf1717","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":68,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"dbd9f87c-c593-4ea2-ab39-bbdb9a56e0aa","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":68,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"68d18ead-6dbb-4ef0-a619-ea5532e3ff60","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":68,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"fee02f93-80eb-4e72-b2aa-9faba41703d6","block_type":"box","text":"II-37","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5731afff-c03d-4cd5-bf36-0c2be567761d","block_type":"box","text":"NM1026U-5978945-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a150f40e-37cd-43be-a2ab-b7b4f03fb096","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":69,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"8f5d0967-1388-49f3-b2d3-0ef79413276b","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":69,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"c8eacf68-f9c7-4a17-a532-b2268012e750","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":69,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"2aa1b151-a220-43d3-a476-395b45cbac42","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":69,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"dc305d2f-79c7-4571-b7bb-7cb38dfd3aab","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":69,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"16fe3408-b49c-481c-a2cf-dae0f5f3f69f","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":69,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"971763fd-fdb5-4a60-b9f4-28570b0092cb","block_type":"box","text":"foreign securities.","page_number":69,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"0734e8a1-6084-482b-8c91-ffb815003e86","block_type":"box","text":"Risks of Investments in Russia.","page_number":69,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"1a2079cc-31c0-457b-8109-9075623cc2c8","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":69,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"5e810a91-71bd-4a6f-be55-931bc2e647a3","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":69,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"d7efd91b-5344-48e1-8159-635cf848fc53","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":69,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"16a55697-7b00-40f6-8c92-d9ca1013ef99","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":69,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"928acb92-f7da-46f0-9886-b080b7c04748","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":69,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"c2b62221-c9eb-4a6f-ba71-0d75b7f83c8b","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":69,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"334fb7f7-6c33-48eb-8013-ee021e97af3a","block_type":"box","text":"developed markets.","page_number":69,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"0ced913e-6aa6-46ff-8406-47d3d8f5b828","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":69,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"61cd94fc-8409-4cc0-b8a9-f38bb601ab12","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":69,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"59e3f0b5-181f-4ef5-8b14-cde062c8a5d2","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":69,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"05105da7-57f4-40d7-ae9a-a139005efe75","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":69,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"138d9797-2db1-49c7-8c29-5efab0646127","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":69,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"3d2f9b81-9553-485d-8789-ac7edfb505a1","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":69,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"748635ef-8f27-4444-ae23-72d8656d6a46","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":69,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"03e0a41d-c2dc-4b36-91c7-bc2c4225f9b4","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":69,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"2ad37cc2-492f-430c-975f-452b7dc6e96f","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":69,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"0886aa32-37ee-4346-9524-3b1722b23b90","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":69,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"ec9190c7-122d-4aca-b8af-0cd5c82bea74","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":69,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"2f2151d5-a05c-4ae8-85fd-a35eb2f8581b","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":69,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"297fb987-f037-405f-b913-7a049237931c","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":69,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"d47c71c2-86c6-4faf-9833-c9e39ce406d7","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":69,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"8aea78c7-28f0-4eb2-915b-89c1774109d1","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":69,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"3d191226-7077-463c-bf61-1f987226061e","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":69,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"3d1fc8bc-7e6d-4640-92a0-0a1473684f98","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":69,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"310a3703-f479-44f0-a7ab-74d2bf0ca2dc","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":69,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"1f5aa3b7-bd09-44ec-a633-c16abb6e2933","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":69,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"ad57996c-ff58-4d35-8baa-77678425dea9","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":69,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"15c76022-2c9a-4e18-95ea-dcde0b7781a5","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":69,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"165bebdf-2c8e-42bd-8a06-58a10b07c7f0","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":69,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"7e47435f-5be5-40a7-96a8-b77c55003ad2","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":69,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"73de32e8-cd85-407f-b4cd-0d7692eab20b","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":69,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"743e098c-d5fe-41dd-893f-e991714f9667","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":69,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"caa76f5d-ecd9-4c33-a15a-e80d99bcc3bc","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":69,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"02bff2c6-a6d0-405e-bba5-eaf88f55c1de","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":69,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"d38d8ccf-9060-484e-be36-c527a4303e9d","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":69,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"306069d3-80cf-41cc-b126-966d1224431f","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":69,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"f35de20e-5193-4295-83cc-3537c8b64647","block_type":"box","text":"sectors globally.","page_number":69,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"440f93b4-1475-4d4b-acc0-403410c02d9d","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":69,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"07cef0ce-426c-4982-8e08-9347a94effb9","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":69,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"9acee10f-7c5e-4253-9f2a-53155d5e78e0","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":69,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"a2c15208-694b-4a99-9399-0d03525c182a","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":69,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"4bac3e11-f2c3-426a-97e5-4b30da828777","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":69,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"b802b460-e3fe-400b-a013-fe20dfb3b979","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":69,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"f1a95da8-dbb7-4ff6-b892-fc24908bdd53","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":69,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"dacf8832-3519-487e-a2f0-e7f644f66ee6","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":69,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"82ef1581-df82-429d-8969-b4de96ba90a7","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":69,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"03962fa6-cded-4bce-9ea4-c0b38a44058b","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":69,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"103c0030-4c59-42a7-ba02-2dc8d51518a2","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":69,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"acb29e0c-93c9-4f83-97fb-c02330726076","block_type":"box","text":"II-38","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a40d330-9196-460b-ba41-3f7e4c07a7f4","block_type":"box","text":"NM1026U-5978945-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c490b619-42b1-4f3f-a578-a81e3f30dd7d","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":70,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"618bf231-f994-492d-9cfb-8cb08affa74f","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":70,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"d7e6a7c7-de4a-472a-8e95-f4bf64ace8ca","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":70,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"34cab536-24d3-41a2-9407-cc86d9f26862","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":70,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"dcdfdc0c-23f9-4a6b-8dbc-ac56ed03f68c","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":70,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"71ffa4fb-3076-477a-bd32-e7c0a5d92124","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":70,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"3f3b6dc0-5768-4918-bb22-7b2c427b7bdc","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":70,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"15863ff3-f82b-4cd6-9431-fd78ac548e11","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":70,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"f8b3cbba-5a97-480b-988f-803ff9e4c1aa","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":70,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"a9112fec-c3d4-43bf-8860-6be1790ecb62","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":70,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"9430346e-5909-4146-a97a-de74987f25c3","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":70,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"b70dd540-cfda-46ad-8688-705456c641b3","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":70,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"3a3ffe2b-8b93-40cf-9059-875e46ae672c","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":70,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"683ccb20-4efc-4fd0-a53c-0786a2bcb6da","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":70,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"cf3b5b0d-dae8-460e-9f0a-92e1f98c3c63","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":70,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"e843ef9f-1fad-47ce-bcce-59f5038f311f","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":70,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"fecd1797-a1fe-44b7-b4b9-eb5e9d54f9ff","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":70,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"804c7a4d-d784-4cd9-943b-f9be031e58c3","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":70,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"42d35717-40dc-487a-8fbb-a783a877d863","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":70,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"1d610ade-b264-40fa-8eae-fe6b110412f7","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":70,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"7a9f831f-f559-4833-a785-0515db0d884f","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":70,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"d6e2791f-6ea5-4a86-b893-9671bd5d4bac","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":70,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"115957da-3201-41d9-b4d3-a5681a3a0fe9","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":70,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"7e035c13-9ebd-483c-97dd-281eb81bdb93","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":70,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"bb4af57d-db93-41d2-92c3-a49d916a5dbf","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":70,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"f2de796d-c6d1-48f2-b39a-48833d0820ff","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":70,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"80199d87-f4e2-4359-97be-e22abc542dc9","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":70,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"8eaf7c88-913b-42fb-a1f1-69c64ff0c524","block_type":"box","text":"impacted.","page_number":70,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"efb3d07d-5a5c-4918-a495-629d579508c3","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":70,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"7d697b1f-0437-4adb-8866-2f5d070568f6","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":70,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"23368901-9e32-4e46-a096-bce38eb8ddb4","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":70,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"34bc5308-3d6c-4ead-a856-435e8bdf4f74","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":70,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"f13ef7f2-f462-4bc0-8284-3f3349e09f4f","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":70,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"46b0b7ff-df8f-4f50-bc7e-971e9b749258","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":70,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"9d068521-1205-4789-8d99-716a531c5442","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":70,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"3b075e56-a7a5-46a9-852f-7ee41b07e869","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":70,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"7fa1753b-7837-4646-b8b9-b67a18f7aba6","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":70,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"5be5c23f-673e-47d1-b7fd-ee76f01392ef","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":70,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"ea8d57b2-864f-4c18-a906-2e9725c8c094","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":70,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"de9245da-11d2-414e-a906-4f300dc6e44c","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":70,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"6f16cd28-471d-4c5d-9523-4ede10bbbec5","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":70,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"3c8949b5-d45d-4595-9b67-9abb43716eae","block_type":"box","text":"economy.","page_number":70,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"f3417a5b-4a54-49f8-b948-806b6c747fcb","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":70,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"0fcfddc4-6726-4156-b76e-3ecb0c8d7a01","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":70,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"4998e83e-0b44-4c50-89f9-999e675fc3dc","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":70,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"2ce3ec4b-c6dd-4737-8ff4-b23bfaf54c59","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":70,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"e028a1b8-e77a-49d3-81df-5109c2ed97f2","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":70,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"81f45614-6e22-44e6-87ea-2e03a554182e","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":70,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"57d2047d-8adb-46aa-ac59-9b24f7c2ec7a","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":70,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"08668b8c-4431-4654-89be-10d303250b98","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":70,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"eadfdedb-4d24-473e-8858-0ec408498251","block_type":"box","text":"typically the case for investment managers.","page_number":70,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"9fb0a95b-f287-4a71-951b-ec93f5ee1fe3","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":70,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"46112153-683b-40f7-a89e-05a1becf99a6","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":70,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"b67157c5-3975-4b91-8cf3-564d0fd9f1ef","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":70,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"36c6369e-2b08-4e42-8462-9a46e586a961","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":70,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"b33849b7-650a-4ebd-90e8-061648a185ce","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":70,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"39a158b3-b2bc-4118-bfd5-27a359d9df9c","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":70,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"c7b4f8d3-3bb3-45b4-b780-18d50f99e82c","block_type":"box","text":"II-39","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4140913-7f11-4fd2-ade5-362ca26df34f","block_type":"box","text":"NM1026U-5978945-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"711599f3-18c9-47c7-9cc5-3b3ddafdb721","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":71,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"c62d44cd-c053-4477-884e-0c24032df49e","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":71,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"f179afc5-0ddd-49e5-a1c8-d01ebbbf37b2","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":71,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"0b817cac-0847-49ae-958e-3d949941bd04","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":71,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"bbde14d3-ff96-44e0-a59d-16d4b004bb6b","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":71,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"509a060f-76ee-4c7b-8fd6-2d786d0470e8","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":71,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"705654f5-aa02-445c-8bd7-30e5d8e31c94","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":71,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"94339967-2b85-4a03-ba7f-5b75e456293d","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":71,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"b6daccd6-870f-43b3-9d9a-90e9d8cf732c","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":71,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"ff89995a-4b4c-43c5-9022-24bee3d81c9d","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":71,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"2ebc57c5-40dd-47a5-b2da-0c2fa0cb5fe7","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":71,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"3503630b-13f3-42ae-a859-d7a8c525eb91","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":71,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"acb7c31b-32d7-4bd7-a9cb-cf791ae8581e","block_type":"box","text":"will be indirectly subject to those risks.","page_number":71,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"25358c3e-cee9-4a62-b0d6-c164a272fc56","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":71,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"66b9fde9-ce09-48bf-91da-61ec681e8a01","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":71,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"7230b3f5-46ba-4940-aee6-c202ca9dc0b9","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":71,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"774f87b1-cac4-4f18-bc48-d4fcfd4c8ea8","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":71,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"4b036bc9-ec52-4849-8708-aee10e0f2559","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":71,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"71eb8f1c-1ba5-420c-a4f8-1ac0f68a4267","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":71,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"93b21f55-64a8-4cd6-8db0-6e64dfd685b8","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":71,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"ad24f78a-ed13-4dec-a62e-89d2b885b8b0","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":71,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"0b05fc73-0149-4ef3-8f77-3ac6cf04234d","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":71,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"192dd8c9-9fdb-43ab-90a7-a4f94061ae5e","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":71,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"44ca17d1-407f-4da2-b86b-f13eb0f5271d","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":71,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"4edb4260-f37f-43dc-a0c6-cecb92356899","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":71,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"9f9312f9-23b8-4765-998e-6469a241472e","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":71,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"8009e07e-4495-4c87-9ef3-e43d205d22ff","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":71,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"22538946-04ec-4d04-93c7-8ae317656fed","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":71,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"177f3ef0-3849-4201-992f-a3cd87709106","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":71,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"964605c2-5c6b-4ac6-9e7d-9dafda474c18","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":71,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"647d7a73-37d3-4843-b8e0-364b90611eea","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":71,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"185ec52c-c99f-485d-8eba-224081025a63","block_type":"box","text":"impact on a Fund’s investments.","page_number":71,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"9216dc34-31a8-4a6d-9b73-50baf45b427e","block_type":"box","text":"Brady Bonds.","page_number":71,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"e6eeef0f-7d42-449e-b61a-f3927bad6a27","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":71,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"2978089f-b2c2-48ac-ae54-5c987550df15","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":71,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"50a40665-cb46-422e-adc1-36548c38ac7f","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":71,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"9fc5534a-217d-415d-83b1-463a6387557b","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":71,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"1e97ad0f-7d1c-4d4b-8884-8254fd7cf95b","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":71,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"e72d5e25-5c3d-40eb-a2df-703f307c9d28","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":71,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"15d10316-1b25-4c95-b84d-90cf2c5e11d0","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":71,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"eee26f0f-bdc9-4eeb-9846-a72ddf95607c","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":71,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"cc12c29d-f584-4970-b867-caa51fdf904c","block_type":"box","text":"Venezuela.","page_number":71,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"6c7e546d-ad42-41c0-804d-4b7f0e5a045e","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":71,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"37f69692-8469-4b27-9dd5-be12fbe270d2","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":71,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"ef8ec10b-fd3d-4b37-8c2f-0b746cabaead","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":71,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"9f9e324d-3e05-4099-94d3-b37d6c2e196d","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":71,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"56e27613-ea02-4319-b080-fafe811341c4","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":71,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"e015695e-cf44-42db-a16b-eb840a4111bc","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":71,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"b0013a5c-b8a3-4113-a20f-37a85bcc8682","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":71,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"7d28dda0-b376-49ca-9ec6-378c7aee9819","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":71,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"e77e7097-5ea4-46c1-844e-44c2027fa8cb","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":71,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"66e26933-f18f-4be6-9633-75e2051e028f","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":71,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"b7a01b18-b0f2-4e98-afdd-044fa67cc165","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":71,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"187fb3d3-bcaf-4ac9-8f9a-785a75af5e67","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":71,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"f8a4580f-9500-4f63-b8e1-7a0bb936ef4d","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":71,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"80faf200-ef2f-4762-9246-1230f683fefe","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":71,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"beed8372-92e2-4689-b2a9-99189158bb5c","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":71,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"3881363b-66ec-4112-8aff-66d086e96a1a","block_type":"box","text":"II-40","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4e3111fc-cd91-4e82-8233-fe08188e6920","block_type":"box","text":"NM1026U-5978945-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2f95a0ab-c08d-42d8-8ff2-fd6ba690039b","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":72,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"7ec4b165-9171-4d5b-a2b3-2e1258d3e68b","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":72,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"8a5d99f1-bbec-47b2-b00d-3551d9943d31","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":72,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"8708816f-c51f-4fd8-885c-2f8cef29425e","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":72,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"72662448-1972-4174-abd9-0bf4c01aeac6","block_type":"box","text":"China Investments Risk.","page_number":72,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"cdc31a00-e1c3-4acf-99c0-8eaa3486f147","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":72,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"e95ecab9-1ad3-4c4e-8b26-b0e5056d9359","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":72,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"fb28b073-65ce-4a92-b74d-3189d5a59065","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":72,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"ac55cb14-3b1c-4cea-9543-52156b4587e7","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":72,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"e42bdc03-8ea0-4b94-afa5-277d3af51252","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":72,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"60765838-72a4-48d2-9075-2d416a3e6c3b","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":72,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"fefe0adf-f2bc-42e5-ae6f-8623eab89ef9","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":72,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"2eeda981-548f-45ef-baf9-dbae55700740","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":72,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"fbcada0c-8e49-42af-9a06-0aca93c61e9b","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":72,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"ef008d7b-3cb5-4a80-bdf0-68919080f388","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":72,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"c75c2795-8a5f-4415-8395-6e85c04700fe","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":72,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"2241e6e8-fa85-4498-97c7-a10cc0a78159","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":72,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"1b7f13a3-9979-4d58-bb8a-a25bf14c82d6","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":72,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"53b67995-9f57-4675-9e8e-da01e9b9948a","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":72,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"21556091-349d-47af-8fef-fbfb8126c17f","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":72,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"1e96b7a0-7623-4a04-b7e8-1dd0b096e620","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":72,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"29512aaf-aab6-4195-9183-3089774837f0","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":72,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"c73c0e1c-441b-4503-872d-5e4a47bd70de","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":72,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"c3069701-132b-4895-b09d-a90c8be43217","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":72,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"3ae2a60e-b9de-4211-b24c-0de276755f9a","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":72,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"cfc7a584-035a-479d-afed-91122421fe10","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":72,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"a49531f8-abd8-4167-b5ae-ec27b68fee09","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"6b1e8c5c-eb6d-4ad9-b33c-0e3f56ce88e1","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":72,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4ee69ed4-6b1b-45e9-b11f-570d49a797fc","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":72,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"15741e10-64b6-419e-87da-9a47b29a31e8","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":72,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"4241e9dd-5009-4d18-b8dc-1087cbd1906a","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":72,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"6f9888f3-7530-4e17-9491-7e17e2df40d6","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":72,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"ab88ab4d-dfa6-4205-8c50-41196894e899","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":72,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"f4b2150f-2dbc-473d-9da3-ab9fc79fca68","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":72,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"9beb8a15-5ceb-4846-961c-4f29a1325c2a","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":72,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"34c229f6-891f-493e-8833-bc84669e0ebe","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":72,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"3348a779-4bbf-48d6-a33d-954f689f91fe","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":72,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"8fd0c3d0-bcc1-4f6a-9458-6cfe4bc7ba66","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":72,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"0e3a235c-fd46-43fc-bb5a-8f1fc96b485e","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":72,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"7e573dff-05d1-4b5f-b78a-fb2b0099a871","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":72,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"c3fbdb1f-fbe3-4125-a38d-dc4108caa4bb","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":72,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"b426766c-931e-498b-9eec-8ece5a7ff892","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":72,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"f0e51d69-8b5d-46c0-ad5d-b559b85fd013","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":72,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"55503d01-00ba-4cdb-81b2-88e063e44c3b","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":72,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"86b0769e-ed66-4372-ad93-f2d564acb840","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":72,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"3456fc4d-f06a-447a-a615-b1f95cdceeb9","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":72,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"d84ef995-9c6d-4ba9-a06a-3488389bee1c","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":72,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"7c657d63-ed8e-4fe4-9d82-339cf023e875","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":72,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"4cc1193c-efb2-43a8-8454-0f4af70c9d96","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":72,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"7ccc0ddd-bcc9-413f-9a4f-d687b90fe1e3","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":72,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"8c913a7e-1f8d-43e6-8a2d-bf426380b428","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":72,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"fcaebaa3-cfa9-4b6d-ab6f-7888098d479f","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":72,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"2ce0fe85-c216-4a4a-91e5-5cf0372051a2","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":72,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"dc7ea04b-f7be-4275-bbfb-e46cd746cd13","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":72,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"e8510571-5d35-456a-b640-2947fd422a72","block_type":"box","text":"sub-custodian.","page_number":72,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"eb7c7d4c-0b83-4158-abd5-895a4fc1b4d3","block_type":"box","text":"II-41","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a6877e4-2bd1-40d8-aae8-8db48c2d8ff0","block_type":"box","text":"NM1026U-5978945-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"df0e5069-9d4b-473d-b55e-7a6c031be849","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":73,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"45be35ef-8a5b-4f02-af70-f842f4ae2a10","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":73,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"9c509b42-abfd-415e-af71-0bf09f894dd9","block_type":"box","text":"on investor protection considerations.","page_number":73,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"daf69258-8366-4c24-9ca5-8b920685e4c8","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":73,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"2b97884a-8877-4a21-99e3-ad54f994d177","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":73,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"716af66c-fa4b-416b-b02a-692ce09de120","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":73,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"1a30d2cc-e257-4c08-9d9a-7d4f814fc91e","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":73,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"50d5722b-cbd4-4ccb-a21d-bc5d1fa22c1c","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":73,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"0583b0d9-53e4-43ac-82ae-e5f16862e57b","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":73,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"693f5955-b220-4066-a298-60cda80d38a4","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":73,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"28850791-6f10-459d-98e1-73070bac5b55","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":73,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"4fc7ba3a-7bd5-41c4-9508-bf3271952a38","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":73,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"cab1b980-41b9-4fd4-b0ae-2f5a5f6059e4","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":73,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"960493fb-c856-4ca5-84e7-f720b6c1b660","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":73,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"fea38909-ccf2-45bb-a0ea-3e65f9a5670f","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":73,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"f37799d1-21ef-4fb9-b722-4b0c4c7d5f1e","block_type":"box","text":"accounting firm.","page_number":73,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"b87b65b0-3050-423a-9b76-553f4cd16dcc","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":73,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"a4821bce-488c-4088-b680-a2c91f4c2abc","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":73,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"9f20b27a-a894-409f-b947-f6bfb55f3c37","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":73,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"0e34da61-f87d-4f5a-bd33-23e0bc876b4e","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":73,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"2ff5adea-09a8-4f0f-8d2e-4968d8a95d6c","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":73,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"9b50248b-5e5e-45c4-b317-2abdc5a3fed7","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":73,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"ab5f8856-dba5-41e1-8dea-81c4e68791d2","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":73,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"000abc65-8474-4022-97de-4557dc0631de","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":73,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"1ed96734-4ff8-4606-a09e-c31fb0bd48ca","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":73,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"18da843c-c373-4058-8080-d7c96fc326f7","block_type":"box","text":"RMB (“CNH”).","page_number":73,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"bb3c7a1b-03c2-4218-bad1-68ac4718a64f","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":73,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"f0e516de-c951-4e65-96b1-da9063a42759","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":73,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"81981c1d-57fb-4a2d-8a09-77ba765a5709","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":73,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"e4a7b878-cfec-4247-89fa-423ab9b27494","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":73,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"34d26458-2421-4c9c-b01e-57b41eddba58","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":73,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"5d796452-bac2-467e-8cfd-e65a34d29382","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":73,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"d185538e-2dca-4e43-b31b-072e4c8f1f96","block_type":"box","text":"represent equity ownership in the operating company.","page_number":73,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"c6316dfc-cb68-4948-9553-c3c935a6d1d6","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":73,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"289b85cc-0fc9-40a3-aead-03a21ade11d1","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":73,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"ed7c8647-a034-42cf-a393-d21403234302","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":73,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"f2a041d3-3ccf-459a-8fc3-f48b0b967720","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":73,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"58330e3d-1518-409a-8e31-d46218c887c3","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":73,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"3565fe3b-4528-47b1-b734-9749671fa1c3","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":73,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"7f7256ee-6542-4fa4-80ab-8f308daccbc6","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":73,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"6bddef13-998a-43cf-b38c-f31a11b568ff","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":73,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"f716d675-3805-420d-a1b3-fb010708e0ad","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":73,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"0b3eaa30-d812-480c-80c7-e3f3a10ec703","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":73,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"beefa962-ddf1-43b7-a101-4fd5eb81b2ad","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":73,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"627d6ee0-9974-4ca2-93e1-6e783d0d2dc6","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":73,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"36c661db-c653-4a38-94c0-48ed864a0938","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":73,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"a2affc23-324a-4dc2-ab45-43be7e5f4b06","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":73,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"e929d546-b7ac-424e-9c2d-05f899c1c6a3","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":73,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"fd98ba7f-ac9b-4e4b-a6f4-ad76f994fce1","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":73,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"7f532de7-73c4-4bdc-a0dd-38adbeab87ae","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":73,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"ee3b32d9-a744-4782-82b4-ec3bc9c1d2f5","block_type":"box","text":"losses to a Fund.","page_number":73,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"33040510-de08-421e-b11b-5db76e21b1aa","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":73,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"9e16cc98-edeb-4ea5-8fb7-92b96a96593c","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":73,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"7e030ba3-280c-476b-bcbf-2fe452f75fb7","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":73,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"09e6c74a-fe7c-4ee4-9c28-f16c995a543d","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":73,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"fd2510b9-8024-447b-88cc-37d948092569","block_type":"box","text":"II-42","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad1cb0b0-f805-4205-9f49-6638e120bd4a","block_type":"box","text":"NM1026U-5978945-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4567e399-8a3b-4776-b151-cf6be4f519cc","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":74,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"bfd31bf1-4ba5-4652-90c5-796f2ee4402b","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":74,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"2631892e-874b-4fd5-8de4-a640d812c093","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":74,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"de0dad9a-057d-4647-8753-33fef7d98bd6","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":74,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"d8b53df7-5560-4e18-963f-1dd3bde2a70d","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":74,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"38f04687-d6ee-42a7-a628-51fb771b07fd","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":74,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"b8d10999-0375-403a-823a-8e20d3a5f8fa","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":74,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"a33d2260-962b-4b36-8f06-f3d0057c8ecc","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":74,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"dcf4f896-212d-4f3d-8208-20f7d197a58c","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":74,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"7b0eb93a-6027-4b25-a5e2-dc1a62ea1801","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":74,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"6301e2eb-03c8-47f3-a49a-4fe372cd7a55","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":74,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"141b56a5-c9ff-405b-b80a-0b9cc22be3d7","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":74,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"6b567cf4-a2ca-4c5d-9030-0672f59c4758","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":74,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"79b9d605-88c8-4560-9f4b-b0297b4a2f55","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":74,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"243bccde-7873-47a4-8d4e-76974d5a1fc1","block_type":"box","text":"such companies.","page_number":74,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"78cc7339-6fa9-40d9-ad71-20ffbd2c3b1c","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":74,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"7a105b5c-7cc4-4d73-98cd-f3ae18cb7f6e","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":74,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"5bc05676-614c-4b45-a8fa-495d8688e608","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":74,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"5878037f-e24c-4ef0-a0ed-0e7880ba5f45","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":74,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"aae3bc40-0020-41e0-a437-34fae4f257ea","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":74,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"8f90e298-c6cb-42c9-a905-b5c31a2e3149","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":74,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"2426ae7e-3a06-43de-ba2e-1632ad08d558","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":74,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"8cc784d5-dcd9-4333-9eef-d19439b7bbac","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":74,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"5f70dd29-8601-4167-b91e-6675c0b60433","block_type":"box","text":"standards.","page_number":74,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"f7690a41-fef4-4852-97db-ed0ddc9e3e53","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":74,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"af06e205-420f-4e54-a1f7-65487d73881e","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":74,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"d77ae285-37ae-4940-8e38-ff1028c7d5f0","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":74,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"86ae4bac-3111-410c-bc76-daa1ed051435","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":74,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"19494dc3-3b45-419c-b372-0cd2ce16d1bb","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":74,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"04a26b02-960a-4417-a56b-c2b4900e69b6","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":74,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"8d9585e1-1a04-4405-a268-d84873f147e8","block_type":"box","text":"General","page_number":74,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"b268927e-3ae4-41f0-986b-67067207c15f","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":74,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"ae2ad68b-a4db-4b00-9289-086428242652","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":74,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"468bc7b2-e31b-4235-814a-042241d0117c","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":74,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"46c4a53d-5ef7-474c-9544-2695bc43308b","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":74,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"926650ce-5aff-4733-bd62-224bc89208a6","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":74,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"a554be5e-d8f9-49eb-a1fd-423614074abb","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":74,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"d7c4ff0c-c8a8-4a3c-90d6-46188b19cbf3","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":74,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"9c000e83-b131-4157-abce-b18d6073ab0e","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":74,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"10aca302-3366-4b08-9894-48e785bf1212","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":74,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"7de6f70a-4592-4776-abd8-a1f6eaaa0399","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":74,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"cb278a2f-f6a1-4450-940b-b22b5f97a550","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":74,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"6677f942-f3f3-4e9a-93cb-a4dd72600726","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":74,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"6c944f64-9a8e-460a-b52c-897ffb4b1fba","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":74,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"c3d061e8-6a69-482c-870e-ffa1d6b5514a","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":74,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"b39bde46-04b8-447e-bd2c-9303ac601f5b","block_type":"box","text":"company established by SEHK.","page_number":74,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"7f5257bf-a70c-48f6-bae3-13dcc5d36835","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":74,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"551541ab-89d0-467f-b091-27bb6279c14f","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":74,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"6a1bee01-21d0-4a7f-a822-4aaf77875377","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":74,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"3e9c7706-e0ac-41fe-89bc-2acfd95e1cb8","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":74,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"a8b1ceb8-a6b6-4b0c-806d-25dc564a37e2","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":74,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"0ef89fb1-5454-4ee3-b58e-3963e0260438","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":74,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"ec3aa501-b498-410b-b462-cd6a4cf18657","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":74,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"edeec4cf-10e8-4081-8b28-1d2d1e29ce02","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":74,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"b548331a-4f43-410b-a113-bff5b228a9e0","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":74,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"9a8100db-4185-49c1-a6dc-04f0b52e852c","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":74,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"93ca423c-3f7b-41d1-a1af-b406cd2bcb40","block_type":"box","text":"II-43","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b89e4542-52a8-48f3-9f9c-e9d8230fa2ba","block_type":"box","text":"NM1026U-5978945-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c9199f09-96fb-4ec9-9de3-7092d097b22a","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":75,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"52e25e76-54fc-423a-9a1c-0cf0cb6cfa40","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":75,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"60475820-80a8-49d9-8309-6cb5e2a2e5b3","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":75,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"a60fec8a-3241-45cb-ac48-2576605015c0","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":75,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"b4188e1c-d9d8-439d-b3bc-345d2c4002b1","block_type":"box","text":"i.e.","page_number":75,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"98f68da8-d7de-435b-9219-3215ac811f84","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":75,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"b8a83cbe-9794-44d0-b3b5-52ca16d41adf","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":75,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"95fa0703-b2ad-4ef3-ae75-fde6fdae335f","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":75,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"49103843-f89b-4bf3-9421-d56afae3763a","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":75,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"866f9f03-9490-4a57-8b79-c1a8e1f955fe","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":75,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"b43da3d1-3e05-4ddd-aa74-dd242080ef3f","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":75,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"c14afb4e-059a-4057-a36f-ac04fc955566","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":75,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"6ce14a55-9eb0-473d-abdc-a9b83da2c5d6","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":75,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"c6ef1422-453f-4a0c-afe6-18ca1f861de3","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":75,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"bffeadf3-6694-4109-afd5-64362d9a018e","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":75,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"c5f39b76-b2dd-4a02-aae6-8a4c3afdc062","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":75,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"7f76ccaa-f9b3-4327-b256-828e5f07f922","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":75,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"02a57e17-b657-487f-a2a3-081ddb9d76cb","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":75,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"e14a193a-2e82-4411-ae1c-09849e79490d","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":75,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"214a99ec-0bcd-4380-8965-63ba995fd4d5","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":75,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"18c650cb-57e8-4aaf-82c7-f841642513d8","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":75,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"c532b1bb-3e24-4c13-852d-849b77b3668b","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":75,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"681dcc5d-3e37-494a-971e-f701db507a31","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":75,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"ef8495c6-3491-4d60-9367-5f0ac8ab845e","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":75,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"572fcb39-e126-4ede-ab1a-db15c4edbe3f","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":75,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"03103fec-bff2-45d5-a266-614119a5a676","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":75,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"b633546b-ef2a-4342-9497-a3b3e7e11d27","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":75,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"c95b575d-a6c5-4a45-ba3f-163631370e82","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":75,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"753e24ef-6721-4f92-9a01-7b2f5eda4b65","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":75,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"2b8a1f23-bb08-4f61-abe0-f8cd569b208a","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":75,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"553f489f-5ae4-441f-b97d-a2b1e479eb89","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":75,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"41d9a299-3598-4fc6-881c-902142c2329c","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":75,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"a29eb6e4-9000-40e3-99d0-6d24605aa21a","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":75,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"41c78bbc-3b74-4c75-95d2-247f8e149d6f","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":75,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"64426cb5-4ced-4164-9cf8-1819f005fd37","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":75,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"0ca978d5-0596-4027-bc95-9d9c7aa555e1","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":75,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"7cb26751-a2a0-41ee-b8ec-981e641c4858","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":75,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"a0137c05-2b4d-4f93-be16-1e621383f3bc","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":75,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"be114bd8-730d-491d-aac4-4b46b0d407e8","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":75,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"10ca23cb-bcdf-4058-9ac0-bd1ad0a98424","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":75,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"87d664c5-6028-4c31-8cba-d2d8ccecd9ac","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":75,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"40b02ed0-5364-470c-9ba3-b8ab14f76b5c","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":75,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"970d7c61-9edc-452a-958e-859fd5c2a537","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":75,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"0627d386-bbc9-47df-a501-72b5dc5c4812","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":75,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"fe88f93b-58bc-408d-9b8a-4603f9f40a21","block_type":"box","text":"PRC.","page_number":75,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"5f57471f-90e2-4103-a548-67caf06f5e0d","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":75,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"7e83acb4-90e5-4a7e-804a-59a5eeae9cff","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":75,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"5eeed339-ab02-47da-a155-3f5b75960d2a","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":75,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"a01310cc-1b8c-4239-9ea7-254ce88c0306","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":75,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"27cf7b5f-f08b-4cc8-8236-4118275d99c8","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":75,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"a78a4aec-1be8-43d0-9fbe-ccdcfaea77ec","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":75,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"2cc75b2a-bc52-4a51-a106-b587abed3cb1","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":75,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"96c7d73b-9dbc-4d92-a225-112f5023e42e","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":75,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"07822302-b5c8-4758-99a3-6e85da994482","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":75,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"4a7c2a24-70d1-42cc-b92b-8163ff1ed9cb","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":75,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"ca8f4429-e30f-446f-8c4c-6e5983047714","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":75,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"9e427997-e11a-4b9b-94f5-038935681723","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":75,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"d2989bb5-d810-4593-9a06-224ab38de05e","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":75,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"f9f94a2a-9d2d-46ec-a2ef-6aaef1561909","block_type":"box","text":"II-44","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6630a684-26d3-4780-836d-e5d96a3faae5","block_type":"box","text":"NM1026U-5978945-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a8deaa03-ac64-4c6c-8976-c4b09842a453","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":76,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"b97d88d0-6ddd-43d7-9d78-425ad280eb5e","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":76,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"0b56ce75-9c82-401d-97a6-1aae6c3352de","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":76,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"7a5fd7a4-5993-45a1-aa49-4ae7e95a347d","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":76,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"20db16e6-c9db-41db-acf0-7cedfe7cb9fe","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":76,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"46dc6c95-9db8-4ecc-a0ea-8f378c70b8eb","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":76,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"df0bf3df-2f21-4808-be31-cd4eee66488c","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":76,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"9cc2dfe4-3f82-4d73-85ff-96c5a3ec168e","block_type":"box","text":"Suspension Risk.","page_number":76,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"88665d90-8b5f-43c7-b4c3-d940352fd8c0","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":76,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"754c16e4-b75f-408f-bcd6-85e7a99ad67a","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":76,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"4d5106a4-a74c-49c2-b2e1-78fc0256bb1b","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":76,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"fa53c022-0a03-4262-9b23-0056602b486d","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":76,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"0526f2fa-15ea-461e-b23a-abb0732ce722","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":76,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"b48a10cf-bdf6-4609-8f7a-4b211213e47b","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":76,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"d977f191-4326-470e-9722-d5e79be02a44","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":76,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"51076ede-b814-49c9-9e0c-40a886495164","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":76,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"38d15468-7a74-466d-9ae3-2f819120da90","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":76,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"cefc98bb-6c58-458f-9cdb-03a439cc72ae","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":76,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"0611ccc1-de6f-4bae-b994-2cae8e1d2a1a","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":76,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"96e02403-ca7f-4d73-88c5-b44527619885","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":76,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"736c2d33-6ca0-4c8c-99c9-ed33873eef8e","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":76,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"df999dee-0b4a-4861-bf0b-531f09811dab","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":76,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"19339378-22a9-4262-8150-08f0180fdf61","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":76,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"0956b086-c129-467a-a066-c220f9c7e250","block_type":"box","text":"A Fund may invest directly in the","page_number":76,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"f5e401b6-fa16-455f-8731-79322fa5cdaa","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":76,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"98de3c2a-ccee-417e-b633-b53f568c3712","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":76,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"d11016f5-6b06-4036-b187-67e9925b6533","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":76,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"a208798c-b6a0-4702-9167-2cff54d0ec99","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":76,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"13d52d77-dd69-48b7-914a-edbd1069d931","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":76,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"8f1fca30-89e1-41a1-a044-f197dac97225","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":76,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"fc021bf9-a7ed-4bd1-8aea-9130edf12e2c","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":76,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"baef8cce-a6df-43ee-9c66-125357ccbb0d","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":76,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"56c32195-e708-4883-9787-11c2d6b6c442","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":76,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"b398750f-11e0-4f66-a08e-6ff2cbafc74d","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":76,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"9d54bbec-7f5b-4575-ac3c-41bdc1227476","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":76,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"33b7a671-0f16-44e0-8c76-0e0238e7bbc5","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":76,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"c5514804-a78b-4ecb-a102-165b1b3b9ed6","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":76,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"6c383e29-12cb-4263-822b-f2e9ec242b69","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":76,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"97760dc3-a9d3-4cf8-a58b-dcb101a99656","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":76,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"2b32bcaa-e067-4523-8864-80664a0b3aca","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":76,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"f8770c1f-d683-415e-a25f-34f65d42624f","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":76,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"fb760d85-b7db-4dbf-82ba-0ea4eba6e6ad","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":76,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"62712362-0db5-47cf-9dcc-18bd24f349ab","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":76,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"29dd0035-2888-4f58-9fe4-5fa5f7155b8d","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":76,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"6495ae71-69b1-4076-807d-4d2bddae4b16","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":76,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"31c84c93-d93d-4b8e-a244-46cacce209c2","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":76,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"04e81af9-3dce-42e7-9673-73bc10e16021","block_type":"box","text":"i.e.","page_number":76,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"282f950d-87a4-46f6-9db3-002474c3f0bf","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":76,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"f90c8287-99ee-4c79-a2e1-7ebb1da93630","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":76,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"e941dd73-6c6a-416f-a8cc-0dc0645d845e","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":76,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"90d3de85-c22b-4585-8de8-96a097ff84e1","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":76,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"45ed7d7b-9d9c-475d-9deb-83326a260c1f","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":76,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"49733da9-4a4a-410e-8075-6f4f1622b6b9","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":76,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"276a819e-b612-4e45-a3db-bf6ee1560014","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":76,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"1358517a-f33b-47c1-b61d-14ad6b89a244","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":76,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"2528b781-28d7-4129-a04e-cc1445abc2c7","block_type":"box","text":"parties.","page_number":76,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"4d684847-afb9-4db2-96c0-353b7010cfe8","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":76,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"65a13215-a06b-48bd-a68b-bfca2bb1bc7b","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":76,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"451f513c-96df-415a-b8fd-814221892e49","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":76,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"d2581538-346c-4529-9789-ba055366c621","block_type":"box","text":"II-45","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e3af18a-a627-4859-90bf-7fe4ac05520c","block_type":"box","text":"NM1026U-5978945-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ff6ec149-71eb-4ef3-ba15-69296c929560","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":77,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"e9304078-11d8-46f0-b7f0-78a6bd91f847","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":77,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"e56dfcac-f6b2-4a58-84d1-da65c20ef047","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":77,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"5bf70287-7d52-4538-90c1-db64b452692b","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":77,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"71fe10bc-6217-45bf-813f-6a97a41f0b3e","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":77,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"b35e726e-dc38-4df7-993d-3b9a82aa9a69","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":77,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"336e8f19-7aef-43d8-ae30-93bda418f089","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":77,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"3e89947c-7359-45fd-9ddd-522cd45aba9c","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":77,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"503e92ab-3cd0-4fd1-902f-2f22e3780f50","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":77,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"2fa8062a-148b-41f1-a7ae-40e790d57797","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":77,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"e6fc72e2-dfc8-4834-bee6-e623059143b1","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":77,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"5132a993-f780-4757-b0ec-7c9b39a85e6a","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":77,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"55dd737a-e401-4dcd-95dd-228b14eb575c","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":77,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"bab019a8-7cb6-466a-a651-48ba6a887873","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":77,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"df7e5332-c5bc-4676-a65a-5b07775b6b12","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":77,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"b60c5de4-5cd9-4876-b138-d06fc802c544","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":77,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"224b1122-c3a9-4daa-be8c-e78f5a24a286","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":77,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"28b95da6-b97c-444a-bb1c-95aced65b718","block_type":"box","text":"performance.","page_number":77,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"3d7709d0-444d-4559-b64e-29c67d8222c4","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":77,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"49e7bf88-9e6b-446a-bd52-3e03cd3bd1ac","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":77,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"0d00d37b-7029-4fc1-a3d8-c429c9131d16","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":77,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"04619a53-d188-4c08-b97a-b5d4828b29c4","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":77,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"eb42bf05-e14a-468a-8efe-2458ddc2cc44","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":77,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"5fe9b570-7380-435d-92b4-d68b797b369e","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":77,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"53f043bb-15b7-4d02-a8dc-2bfc5d6efca8","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":77,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"11b0529b-b0eb-47f3-b4ae-1b7aea1f3953","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":77,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"f8a6d827-d539-4ede-b57a-ac13ad2aa65a","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":77,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"e6b9b2d9-bac5-417c-bb62-03b954ebc730","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":77,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"76f745c9-4c7f-4066-be4c-3014305c7024","block_type":"box","text":".","page_number":77,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"338f2372-5e63-4ffd-b2c0-f849cf92d8a9","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":77,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"b1f31e0a-6c9f-4302-87dd-9aa6a82ff263","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":77,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"6b77b3f5-6dbd-4d6d-893c-54af023a85f2","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":77,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"50daef45-fafb-4fa8-a9b4-78be57cbfa35","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":77,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"83fb2112-a388-4b6e-8f47-9b148d15adea","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"77e9f4ab-d9bd-4c7f-8db4-b46195c82aa0","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":77,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"1783d284-7249-4f14-a10e-e53c93adc032","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":77,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"1bebe9e9-2cb0-42e2-adb6-65d38a908fe0","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":77,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"280beac3-9b9c-4f7a-8c9d-2572e4941947","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":77,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"078dd5a1-f04a-4c04-83bd-f9066627ba11","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":77,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"6183a362-de99-48a7-876c-a2b79da178cd","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":77,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"767741e4-e1ed-4504-8d99-14c5a4f1e4b7","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":77,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"bba8bb87-8d62-43c0-a75f-eccd9531952b","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":77,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"5e8c47fe-8c78-4dcb-b626-587ea610e676","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":77,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"57e2d2b0-89be-4d28-82d5-50c2bd0a1f0f","block_type":"box","text":"without notice.","page_number":77,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"22a7811a-1c55-4eba-802d-101e9d7f7ad8","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":77,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"1351474f-87ed-4131-a3fb-8c260d0b50ce","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":77,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"0c451dc9-48aa-4f96-beb2-92c28f5f5819","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":77,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"ad282ef3-a676-430b-a1b7-11e8204a50d8","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":77,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"25ec3e46-52d4-4872-9201-c54255f91b99","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":77,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"526143e3-302d-4fc0-b296-173a35f8d61b","block_type":"box","text":"December 31, 2027.","page_number":77,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"d6a875b2-bf0b-40d5-a1b2-eba1d8c4ae53","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":77,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"1820aab5-35e5-437f-8a9e-e975a99f4398","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":77,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"ef1848bf-283b-49fc-b45b-61de5a198530","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":77,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"52275c95-990e-47dd-92fb-0b7614752456","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"7cf6bf1b-c8b7-40c7-9d75-4da539db22ca","block_type":"box","text":"II-46","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b964a510-b298-438e-b7b4-b45384d3f0ee","block_type":"box","text":"NM1026U-5978945-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"77f4c87f-5efd-44ae-81d1-a54c1ab6dcdd","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":78,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"576f2946-6192-4453-bc74-00b72c0573b7","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":78,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"ec29b64a-6df0-448c-8aef-f248ccb3765f","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":78,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"9cc65036-8de8-4e1a-abd2-8b8893bdc46f","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":78,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"ccab8f44-c045-42df-a53c-42d57fbec013","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":78,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"02acfbf8-5a7d-48da-a106-02e62214f118","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":78,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"a4a520bc-fe8b-4185-8d3c-620850dbef35","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":78,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"03f27867-394e-4c32-ab8e-739911bb1fa3","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":78,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"87a03e2c-957d-40f7-8385-b21df297b8e7","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":78,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"aa3911b6-783d-4360-b02d-de8293036a33","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":78,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"be189896-b4f9-4abc-b5b1-ccd78ea9d296","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":78,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"8c542c31-303f-4382-8117-412093f8ed8d","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":78,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"adc45331-cfa2-4568-bdba-554b3fa5af73","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":78,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"d92c980c-e36b-4d6a-b269-92ecba930876","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":78,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"d86901b2-5ca0-4398-b34f-ff50cabc5ad9","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":78,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"c4abb8b5-a642-4d89-bdba-3ccf6fbc7036","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":78,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"fd6626f2-54fb-429d-ae7a-9e4ed0e0b483","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":78,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"98c9109a-8e22-4835-a0c5-779a407b45c0","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":78,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"e7646ce1-1ab8-464d-a3eb-da872328dc32","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":78,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"e62ae673-b929-4c66-b9ee-59f25764b77a","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":78,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"a079d2a4-e359-4ad0-90af-9549d1ca3f3e","block_type":"box","text":"the PRC in notifications.","page_number":78,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"190e943e-21a8-4eba-afd4-72f29e35f0f0","block_type":"box","text":"Investment in Other Investment Companies.","page_number":78,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"5a2061c6-87e3-4385-82e0-5c7551d6f3ba","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":78,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"0f739aaa-8439-4616-9520-a642352d56f5","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":78,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"71280372-c648-4942-a1c0-08e3d96a365f","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":78,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"0e1689a5-6c8a-461d-abff-25847de81602","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":78,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"fa081a28-296a-46f7-a21f-158b946b1124","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":78,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"342e637e-58d1-4c73-b58f-03f0f8cac853","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":78,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"c60c2f7a-fd4a-4763-a277-ca867975b8e6","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":78,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"f18e34f7-d856-4f8b-8d30-0594d816a0ae","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":78,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"b861c9bb-1d00-4a90-9959-997d35c3f532","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":78,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"c15673ab-853b-4f54-a594-8b2068a4cf65","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":78,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"1658acd3-f641-4516-aa44-183a6a9ffd3b","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":78,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"ed73610e-54d4-4fbf-a659-6e82508ab541","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":78,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"894618ab-dc8a-407c-8354-a28bad46755c","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":78,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"253437b7-6448-49a4-93d5-346a565e4a3a","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":78,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"1aa5a662-fea5-413c-b3ad-095c5db76972","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":78,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"b3f94f45-ad62-4a4f-97ee-6609792910ea","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":78,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"81c780af-e710-4483-8c76-c165563c115f","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":78,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"08b02778-d47a-44e7-b2c4-a12d5bcb8c8f","block_type":"box","text":"subject to certain conditions.","page_number":78,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"6fe17d64-d561-4fef-bdc1-1b3ee8b9008f","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":78,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"275513de-2671-4a37-9b67-27439044c445","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":78,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"0c6983c0-9ef1-4f02-8c8f-697da32078e2","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":78,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"5d7d9762-5f5b-4c39-800d-9955d1d6792a","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":78,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"6782b3f7-b96b-45e4-98e8-18e178ecada7","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":78,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"6ff58c13-1ec5-45e5-aff6-ae7a8ebe9e69","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":78,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"70be7dd3-1e07-474a-ad8a-2816c2c67c62","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":78,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"1cd46977-6cd8-4ba5-8a91-2e650f5c1add","block_type":"box","text":"loss.","page_number":78,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"f077a670-6b43-45cb-81c0-dcbd397cd5c3","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":78,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"27ecca6d-7bf7-450c-8396-eb6c9ceca812","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":78,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"d8b5ee50-c5c3-4580-b12a-fb256aa6f9e0","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":78,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"b48991a6-f9d2-4c9b-8abf-25dc86612d1b","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":78,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"e6de3019-c310-43bc-9ce0-44be04f37711","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":78,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"8ca0a895-7aab-439b-8a13-d422da5b9171","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":78,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"cfb3f709-17b1-4ef9-a0cb-f01f14769085","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":78,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"965787e7-a7a7-4fad-9c9a-3413662b38ca","block_type":"box","text":"II-47","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16eb8fbe-f527-4584-92c4-cccfb2d224cf","block_type":"box","text":"NM1026U-5978945-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f40f16b9-fc0f-4ef6-a5cd-4833ff8adab2","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":79,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"c463e092-9a14-401f-b62d-3167b3de0b5f","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":79,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"a370b707-e4d2-47c6-bae1-111feb30bf59","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":79,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"47fa6671-782e-4cbc-ada6-a58967249caf","block_type":"box","text":"assets.","page_number":79,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"1c5267e8-a4ca-46e0-99cf-050b8504e1c5","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":79,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"8d5f8c1d-1a74-422c-b7f2-d987df655a31","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":79,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"5c988f00-43d6-46a9-93d7-21821d9399e2","block_type":"box","text":"e.g.","page_number":79,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"486422a7-23d4-47c1-b600-f3ffc526a82e","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":79,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"5a6d3882-6d8f-4df2-bc4b-359534e59e9f","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":79,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"80e5840e-0326-4b4c-abe7-951a3e307e4e","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":79,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"0722ff89-b593-414a-bf2d-2c989d63c9ca","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":79,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"f0a494d5-55a9-4326-9aab-93cbcd319e5c","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":79,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"94016adf-91cc-4268-8aa0-2cc60ac0a00f","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":79,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"71116c97-8b76-46d2-9275-f84387308d79","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":79,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"2510f070-b5fd-48f5-93d2-7583bbcaa965","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":79,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"a4ad260f-ad73-4164-9d42-aa89e41ec85e","block_type":"box","text":"countries.","page_number":79,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"fe57f021-71f3-4549-a421-6069725b0a8b","block_type":"box","text":"Issuer Insolvency Risk.","page_number":79,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"aa05228e-083b-4e2f-96ea-dc505284be1d","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":79,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"1aff080c-757f-4603-bfe2-6faf9ed2d2d2","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":79,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"237e6e8c-cdfc-4cde-b71d-b6d0d06c392e","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":79,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"4c1dd273-bd29-4f5c-9b7f-ccbe1f307f22","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":79,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"1adc9504-d35a-4443-aef2-0c2a3ad3e50c","block_type":"box","text":"issuer uncertain.","page_number":79,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"5e981012-c964-438e-89c5-4a30b44a866f","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":79,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"b6cefdbe-1b37-4622-858e-f4e7784a3661","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":79,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"9cc446a0-67d1-420b-a8a1-1b8d79416d28","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":79,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"dac41adc-155f-4674-bf51-155c17ef7524","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":79,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"cc130acd-4bde-450b-9996-c878c6fe12e1","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":79,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"20683b28-3a98-4fca-8f5f-2ab2623631ad","block_type":"box","text":"eventually be satisfied.","page_number":79,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"199e589c-2d5b-48a3-acd9-fecc90b52eac","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":79,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"41d7be01-171e-456a-aaae-8c0df3da8532","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":79,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"bdef9ba9-a974-4284-bed4-1a23034040be","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":79,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"af9d89fa-26b5-4c5d-8c8f-478a78537c5d","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":79,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"a274a6e9-7718-4758-bd22-48525c98c760","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":79,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"fef216a7-e554-48c4-8b5a-1deecc6ea661","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":79,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"ac9b4186-d73b-48f3-ab84-58585881be56","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":79,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"31faa879-8827-4c59-b8df-07e994b59135","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":79,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"2d2c1699-e152-4ed6-910a-f2e44946a7c0","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":79,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"e6964c3c-9dab-4b32-ae74-ea028004959b","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":79,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"2e85e495-3874-4c52-8b2b-5a389ecb0049","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":79,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"fc218aa6-83e2-4902-a327-04a622c61723","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":79,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"20bf31d9-2553-465b-937c-0e08180daa3a","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":79,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"ca631cfa-e0e0-46f3-9882-3f2900a437a5","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":79,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"36322b2e-97c2-4cb7-9e26-7e4674aea4f0","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":79,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"1c40cd7a-6ca2-4b0a-8810-c9fbc8f9b519","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":79,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"c89850e2-9f45-4b10-afac-cdfe2a915a9f","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":79,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"d0ca9f45-83e1-450a-959a-d47c3981691e","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":79,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"5508f376-590e-43f2-9fa6-edc52d7f1bcb","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":79,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"d646576c-7f39-453c-b93b-331907c1300f","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":79,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"da2fa37b-ef7e-406a-9b85-1ce09de07a0a","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":79,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"a127967c-1446-4077-ae6d-a787c094c872","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":79,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"e20eb51b-acbc-4959-a96b-b6abe93d655a","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":79,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"aabba967-67ca-45cc-a51e-69ac3f6e0655","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":79,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"1cddd4f7-37ae-44ba-982b-1b00d07cedcf","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":79,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"89e169ea-6efc-4f4a-93fd-f313e9177abd","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":79,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"08fc23be-f819-46dd-80c3-2388adb4a4aa","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":79,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"e6c982d7-2576-404d-b56c-302931c3c297","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":79,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"8621088e-316a-4cd4-9034-c098f7f1bd9f","block_type":"box","text":"that assumed generally by an investor.","page_number":79,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"9b6052b6-d555-46d1-a7d9-e7b328df59ed","block_type":"box","text":"II-48","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"07e444bd-1f74-465d-8818-3ca99b552152","block_type":"box","text":"NM1026U-5978945-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4373fea3-b32f-4b48-9b85-a47a69059be1","block_type":"box","text":"Lease Obligations.","page_number":80,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"df453ab7-8431-478d-8256-5a49d1b32f27","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":80,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"ecc4f1df-7722-4989-a7a6-115da24245d1","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":80,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"c172a902-2dc0-466a-8982-f35de11fb8f4","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":80,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"287eec5c-3060-4493-b356-322719aa5b25","block_type":"box","text":"Life Settlement Investments.","page_number":80,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"9a9fae96-3358-419d-9127-11e0d0bcd05f","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":80,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"4e2c7173-6efe-419f-80b9-f26a48158b4e","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":80,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"c195950d-dbc3-4ede-b996-ac8c73a7e168","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":80,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"28b7490b-2e3a-4c28-8fbd-114570a90428","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":80,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"c080a880-dac2-4525-9aa3-e940b99a5305","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":80,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"43e817c3-a852-4a18-adf7-24c0902bcdab","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":80,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"4c652e8c-b360-4637-b588-6d7f8b1b8be0","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":80,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"137f5a5b-945a-463e-ad0b-2e510d3dd3aa","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":80,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"c3d9bf97-5cee-4e5c-9918-b51d28835737","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":80,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"a208a1bb-7741-445a-b30b-0267338c83d1","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":80,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"49b6801a-77cb-4437-b041-8eea6221aaca","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":80,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"560a5ac0-b5dd-4442-b20f-59ceef0015b4","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":80,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"94673f37-6c75-4134-9fee-8ccc8dc94bf0","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":80,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"971d5d4b-ea3b-453d-bb23-238dadb2ca4c","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":80,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"650576ca-ab86-4e55-857c-c03767dd5728","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":80,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"ad6a0e96-50cd-4ba8-ae52-f02f8ca8b247","block_type":"box","text":"Liquidity Risk Management.","page_number":80,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"129c882d-6fd9-4b61-a714-dee0866bca53","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":80,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"207be755-c7f9-4c1e-84b4-8fb737fd5a1d","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":80,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"57bc6289-e0db-4bd3-bd1c-409f36c7db9d","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":80,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"ad0fceee-3188-49dc-b303-cc5a09783e5a","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":80,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"a98e251f-15ae-449e-b9ae-c89ca02fae0a","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":80,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"e28aff45-361d-43ad-ba62-9b7b3baff79e","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":80,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"f4a51cee-0904-4c15-abd4-a3b04192d460","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":80,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"72193e20-35fa-4fbe-83f0-f0340b09dd20","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":80,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"6d182a18-19ce-4d6d-b58a-db86f88b3844","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":80,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"b88a38b1-7f5d-49aa-b410-a52c4179ec0b","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":80,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"85cb2f6a-6924-476e-afd4-cff8ccb20675","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":80,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"e3df627e-44fa-4050-bee8-dd3271234f21","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":80,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"00b2be39-d0ca-44ca-bc31-28d532323d31","block_type":"box","text":"Master Limited Partnerships.","page_number":80,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"ac1507a8-c655-4488-af13-cd6a047e42b7","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":80,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"067a8d70-519f-47a5-a01c-77345351dfeb","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":80,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"e2f98bc5-1c8d-4a66-acde-33953cc0c21c","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":80,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"d0a04580-a074-46a1-878e-93adcd383147","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":80,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"ed0907e6-c7a9-4099-bde2-ef708f6d92ec","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":80,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"ffe5ce84-7971-42e0-b727-663c29405a97","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":80,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"92c8d9e7-ae59-4974-ab20-9b7ae569d6f0","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":80,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"3ff79998-4055-43ad-8b05-25b0d2d03f0d","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":80,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"961f4274-2e62-4012-a9e0-3c6e2441a472","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":80,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"f69be5bb-0946-408c-a156-fe438dc42ec1","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":80,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"cb20f209-ed46-40dc-9604-ea210e199ea9","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":80,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"51713854-c5d8-43a9-9865-4e410235631c","block_type":"box","text":"in the partnership’s operations and management.","page_number":80,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"b770b8d6-8f11-4a2d-9a92-3207d9375621","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":80,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"7bd236d7-6b28-4896-8aaa-841a0ccf3e0e","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":80,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"2ba9dc0d-9241-4ffa-9732-6f8514536c09","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":80,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"f5ed5944-1f6f-45c0-839f-233729a84710","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":80,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"93ab98d6-5f64-4dab-b4f0-ab5761984ebf","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":80,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"f88175a4-e7f0-4035-9993-bc0155b83306","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":80,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"1cadd3e2-7203-406e-a5b5-cceb3ccc631a","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":80,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"b617e53b-1e07-4649-84cf-c85a992eaed1","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":80,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"bb218997-3e8b-4de1-a4eb-1fd256230e72","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":80,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"7764cb0e-b13d-482d-99ef-c9e9c79e7123","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":80,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"67601839-4d12-49b4-961b-7eb20511e0d1","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":80,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"da357b3b-8c35-4bf0-b83a-5829b7afa496","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":80,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"96b8d0e3-7559-426d-985b-bd83713fb0f1","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":80,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"39d2f08f-0bbe-4ef5-885f-490d50311a7b","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":80,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"e8054fab-3865-4fb0-be8f-d882549e556d","block_type":"box","text":"II-49","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27845200-3e1b-4dab-85b5-3d77ad889f6e","block_type":"box","text":"NM1026U-5978945-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0d536c52-03f8-45db-8a90-c7365d3a038a","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":81,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"f0364375-f4a0-498c-9888-eef213440ba3","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":81,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"cff43f69-a832-44f4-b032-f0af47062dcb","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":81,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"5ec75d66-00dd-4eff-8755-e8f8779254e3","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":81,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"0bb91163-4a96-4b49-9da2-d05da44bd1c3","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":81,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"907a22b4-6cb3-49ed-abd5-171e94fc0c9f","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":81,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"4da970c4-eb34-4378-bc31-076aac2fad8c","block_type":"box","text":"Merger Transaction Risk.","page_number":81,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"61f963c3-b4eb-4361-a76b-083af92eac07","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":81,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"2309910d-6e8e-46c2-abfa-1d7ef2e2cbb2","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":81,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"7d9c543e-a464-4390-a26a-759b02cdd1e0","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":81,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"3806e786-f763-4504-8f10-f9d9438cd27c","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":81,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"90f3aeb5-5b6b-4c1e-89d0-8490b6356e13","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":81,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"26a56dbe-6173-4a41-8673-5726cf31a6d6","block_type":"box","text":"the Fund and may lose significant value.","page_number":81,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"787242b4-e055-4ad6-87ae-cabe52267c3e","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":81,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"45b9e7ee-2ec9-4442-8951-6fbfe263f8ad","block_type":"box","text":"Certain","page_number":81,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"618e1d30-85d7-41a0-b7c8-530e5b61038e","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":81,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"d03e5ccb-82e5-4eb6-b12a-373df57d97a4","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":81,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"66380538-fe8f-4379-8506-39d61617440b","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":81,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"46921d37-b9e2-43e5-baba-bb5445e3b9ac","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":81,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"a41ccf26-1107-4727-88e9-06d91c8490e3","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":81,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"c865a0ce-6092-437c-bc18-7d43472a7956","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":81,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"bb3432fd-765b-4f32-b98c-025068dd3dc1","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":81,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"c2f4b7d7-449a-46f8-8da7-c400d4e60f8a","block_type":"box","text":"branches of domestic banks.","page_number":81,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"7ced804b-7d73-4f0d-8c51-069f641e524e","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":81,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"15bf8374-f93d-4509-8876-04055ecdff3e","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":81,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"08747543-db04-448b-a60e-7724fb4543c1","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":81,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"f099268f-f46d-43db-aec0-9188d0151eda","block_type":"box","text":"paper of a foreign issuer.","page_number":81,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"5f440f69-8899-4c68-847a-4d9eaa40c93a","block_type":"box","text":"Money Market Securities.","page_number":81,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"0b2d634b-9faf-4163-866b-361e401274a8","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":81,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"ab6427ed-69a2-4913-bdd2-eea3928d8852","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":81,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"930b0d60-4fb8-4815-a05b-a69670c107fe","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":81,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"b2234714-0d95-41ff-8f71-35869fe05506","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":81,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"1d7acae0-1488-40c6-9184-c12671a5c77e","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":81,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"2fc54b93-35c6-48fd-96aa-2aaadb45f89d","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":81,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"91af57d7-88c0-4a6e-9282-62ba6743209b","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":81,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"e1d4fcad-29b0-4478-af5e-a3bcb439882e","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":81,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"90044053-b9af-4ec7-a668-aa4fd65397be","block_type":"box","text":"agencies;","page_number":81,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"827ead13-68d1-4929-a9e8-b5e6b625e8ba","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":81,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"bc0d3c36-9b57-4cce-ac45-b28cbe6e5ed0","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":81,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"9a4de73c-0bb8-4695-a4e5-6e45ae755598","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":81,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"22311d13-7e7e-4a28-8a2c-0d754e38ae86","block_type":"box","text":"obligations and credit card receivables);","page_number":81,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"4e994eeb-5a9a-45c6-a93c-c5a4ed4c0999","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":81,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"3c00a92e-1c7a-4199-9119-1ea774f5b228","block_type":"box","text":"authorities and related custodial receipts;","page_number":81,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"1c298782-df7c-423a-87dc-756011d3db12","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":81,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"8f39ab13-b388-434a-a4a0-55faaf848c0c","block_type":"box","text":"agencies or authorities;","page_number":81,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"8427335d-8d0a-48d2-9fab-11c3a6cf262e","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":81,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"81564c8e-dd0f-4512-aea7-123effe7401a","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":81,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"ea6932e8-b1aa-4b4a-87b3-00e840f9caf2","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":81,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"aa82c8b4-f125-4f5a-9212-1253e960e4fc","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":81,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"2d0ce72e-a0bf-493c-8707-01b07ab39f87","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":81,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"a6a77c88-8b9f-451e-ba12-8e621e7d82cc","block_type":"box","text":"States;","page_number":81,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"b5a0302b-0770-4b36-be41-7ebab31c8caf","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":81,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"ece2c336-a28d-485a-aed4-1fb0c89c8bae","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":81,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"2838ec12-7332-499e-80b0-87c1f5ce72d0","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":81,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"1e2e17db-9810-4339-aa11-49957370a129","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":81,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"083df2d0-5693-4b9a-8c20-0b50e5cbf7e4","block_type":"box","text":"II-50","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7459db40-db95-4ee9-ad64-0182ace26b70","block_type":"box","text":"NM1026U-5978945-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"50f9b23c-0622-4d46-93b3-7e7fd2d3c079","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":82,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"dc966839-105c-4d48-a495-50bc1364c2d6","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":82,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"0d73a792-2d4b-47d4-a1e7-20709004ab77","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":82,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"f92b6b99-25fb-4141-b19b-5da190b74654","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":82,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"3e09fc65-4f42-41bc-a6e4-1936230224e3","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":82,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"5282ab65-71b6-46a8-a239-b66589bc9401","block_type":"box","text":"States.","page_number":82,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"5a15bee7-c986-4a7b-b440-f0b51eecf361","block_type":"box","text":"Mortgage-Related Securities.","page_number":82,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"771619a0-fd50-42c1-b52c-01acbae97936","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":82,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"397cc6c4-8d9b-4e35-b5d2-a141d5b74e88","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":82,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"ee69c219-80e7-4bb2-a021-655ccefa338d","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":82,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"21031b07-32c2-4e76-b40c-6ee82b9390dc","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":82,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"0ab2d672-2804-41ca-86ae-1a9992f44442","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":82,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"163abaa3-1063-46b9-8d92-be986f4ca5ff","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":82,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"31b0f993-3a86-4ddb-8fc6-71c209913752","block_type":"box","text":"maturity or specified call dates.","page_number":82,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"e3a690c7-1d8d-4c8a-8163-884627905d19","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":82,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"3260a7a3-fc80-429b-8f57-ca2e00253d99","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":82,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"e53d131f-5745-4cc6-939c-0917a5c73240","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":82,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"cccc3d4f-098f-4c27-83c6-162ffe44cd38","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":82,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"1d6bacb0-fbf7-4cd0-9640-ae6058463054","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":82,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"4654ca05-2f9f-49ed-8f75-df5417deef2b","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":82,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"bc56f005-e707-4e19-83f4-141b4663fe47","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":82,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"f87d2d13-61b0-4c57-b57c-762b85336aad","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":82,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"b837db99-3a7d-4f68-8e3c-be4055fffd8f","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":82,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"daa0e83f-0436-4087-bdfc-d3c2aecf7c0c","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":82,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"c7147c8e-7631-4b46-8143-ab22db940aa2","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":82,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"a306eb9b-248e-481f-831a-9a5e9523497b","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":82,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"50b23c00-9a98-40df-9e41-30536db889a1","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":82,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"ea55982c-723a-43cf-9109-9e369d26fee4","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":82,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"ea6ae05a-e8d9-4299-ab3d-23a91a24a325","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":82,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"19b89691-a8ce-4b2c-8ecb-106d5d7390bd","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":82,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"65b7e31d-6950-475e-b5eb-accc3dc488a8","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":82,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"2c8ac1a2-af43-4c89-9a3d-639cfa55fa8b","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":82,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"ef4b7d21-eefb-48f2-a240-d90b4e67178e","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":82,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"7d5053d4-ccac-41f4-aee7-3406bd24fe15","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":82,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"5841b5ed-3777-4e43-a0ce-7a24535e8afd","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":82,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"5dc2d1de-0f76-4b5c-84ca-7a7b4d2fdf80","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":82,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"eb14c61d-86a5-4511-801e-af9faf053b99","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":82,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"2c684ba0-2ef0-4bbf-9815-2132f9784592","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":82,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"4d8139c9-b450-4999-b2c7-3a829c642412","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":82,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"358ad872-1835-4022-aad0-4f8a518f2344","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":82,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"2f91b351-b633-46e8-8cac-0de11006accb","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":82,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"630fa5ee-62dc-4b08-9d7a-19986595e618","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":82,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"86089bc6-fd80-43ba-b509-4bd877ec0ddb","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":82,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"2c4a49d6-3853-4704-816b-73b28e147f10","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":82,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"3992281c-b9e3-424f-bbb0-b1ea81652102","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":82,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"7e7ccb3d-e5a7-4a38-a61e-96e51dbb3bd6","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":82,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"7ca6ea5b-7563-4803-886c-ca0196c12baa","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":82,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"4eebfbbe-8ce6-4b0f-9f6c-a63ed1c090df","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":82,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"64e3a27e-fac6-4e20-b8d7-0016c36d7429","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":82,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"ec292311-4652-4333-b7b2-2c6b8661729a","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":82,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"3e0e68f1-e5d3-4dd7-9e3f-2d644abd9db1","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":82,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"dc8828cb-7bbc-44ce-9404-22907018e591","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":82,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"6e33d1c2-f8f0-4e6d-bdd5-8e401894f8eb","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":82,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"6eee4873-7e0b-48c9-ad41-d74aa19263aa","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":82,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"aaf0b8a6-503c-4ef0-be28-03bbcc67d863","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":82,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"873f5cf2-ed7c-4921-a927-6a908d69a119","block_type":"box","text":"II-51","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9581c57-1e9e-4ca3-92a0-8c3e4eaf6ddb","block_type":"box","text":"NM1026U-5978945-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3d9102ba-8b93-481c-b00a-772d8a50de48","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":83,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"1936385b-0c8f-49e2-86b2-cd61316c797f","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":83,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"0daacdc6-d9c6-417f-bf91-9e4421089095","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":83,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"f7b3b660-d5c1-4fdc-b1d1-e66b2e6b72ee","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":83,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"b1edb6ac-7412-4ba6-a9e1-caf3a469e68a","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":83,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"d02b521c-78b2-4dc5-a2f8-32a1106526dd","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":83,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"a67d4242-be56-4372-abd8-bbd924cc925d","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":83,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"cfb86085-7ba2-4e3b-b88f-43f3bace94d4","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"599e2ed6-a62d-45b6-b6f7-e0df57f6aef6","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":83,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"00f47adb-89cd-4d9c-aaab-cb7b5975d724","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":83,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"9a01c607-ee31-4ecd-a32c-592b9a3b179b","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":83,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"e5b572be-6e8e-4a99-bcde-5f17d6b1332c","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":83,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"2ec77eff-d91c-4831-8a60-fbc3db1bd3eb","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":83,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"3f28d1ec-b93c-4cd8-9339-e5b600b3e345","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":83,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"3ed94c41-bcf2-4ed2-abce-18b84b7d1793","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":83,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"d99b13c9-988b-4b75-90ad-81d8d39dd069","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"1ce4e897-a3f2-4741-bf6e-72471b0f193b","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":83,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"40584fcc-0a0d-4d3d-95a9-5c1b2a7d3586","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":83,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"b6e1a58a-fdd1-423c-a56f-7c4c5a12b19a","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":83,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"af7585d5-fa2f-4848-b0b8-ab01ac779c03","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":83,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"dcd72c14-564e-43be-b6a5-a16060c03754","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":83,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"4f27625a-6db6-44f4-9ee0-7ff7a3e78590","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":83,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"88ebdd75-f62b-4d4f-bade-4653f58a0035","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":83,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"d7c75637-72b3-4074-adba-118f0d6846bb","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":83,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"2fe222b7-0203-4a68-9a3d-08edeb8f2264","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":83,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"a19af081-c558-4382-9783-51f6ee4f9876","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":83,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"0c342ee6-ddd3-485e-90a3-37738d7f2f4a","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":83,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"88aa681d-4680-40d0-88ed-43c25b111a74","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":83,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"2901f783-8267-445b-afa7-03a91ab16c3e","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":83,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"4a601015-6bb8-4c0a-bb37-33be6161eb68","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":83,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"0531057a-ad97-468d-ab3b-07659e8c677d","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":83,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"97a2c83e-fb05-49ef-9ccf-28936ff2b655","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":83,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"1f474158-cb82-48b6-997c-9dd16ae50970","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":83,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"049f8f23-740e-421a-b776-1c3b3c04b2af","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":83,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"a2dd2008-5b3f-4d15-a64a-45565dfaa451","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":83,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"dfe908b5-daa8-4b85-95ab-ac8266579d5a","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":83,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"e67eef14-e639-43a8-b847-0cdd4e99d7fd","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":83,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"02b7276d-55c0-4d7c-bc37-1bbafde7b787","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":83,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"36553f21-9460-4834-a2b8-3b331f7e4517","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":83,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"671b99be-1569-4001-9f8e-69921022c7af","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":83,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"6b12dc2e-d16b-46ef-9d18-aa7841eaf769","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":83,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"b3bcfaba-b246-4ca0-84c9-dfa32056d630","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":83,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"deb906c6-5348-4dbe-8d15-32c22babb0ef","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":83,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"8efdb62e-20ac-413b-8ad5-07ce921a476e","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":83,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"f12dd381-df04-4edc-a35f-e93bdbf321b8","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":83,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"52c412be-8871-470a-86dd-394cfeea1822","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":83,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"cc5e2c97-cd69-4eb1-a128-41b3490d6bba","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":83,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"df41ae4f-75e1-4e76-ae1d-36e8ec8a704d","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":83,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"177adade-c3d2-47d5-9e0f-752e9615e089","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":83,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"b32156de-205a-459d-9562-75f59abfe44f","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":83,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"8043aa73-8932-417b-8f61-c8e4fd3c2806","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":83,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"dcb060c1-b74d-4842-8e3b-a8f76bf9f98d","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":83,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"46715c94-be20-4c6c-b011-1d7f43bef6b0","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":83,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"28bc8497-7bde-4d7e-89cf-63bbd97c4e90","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":83,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"1b2e7289-03ac-4b53-a826-5e34b3526418","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":83,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"adf220ae-9cc8-4896-94b7-6bf77b74cc3c","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":83,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"21b310bf-d5ca-4663-a6cd-07eed3da4d9f","block_type":"box","text":"II-52","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e6b6bd76-66b7-4ac0-84ab-74e6b9662fb6","block_type":"box","text":"NM1026U-5978945-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5049ada5-eaab-4dfa-a394-5f0aa37e62bc","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":84,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"cd397f75-541b-4445-b142-c44152602faa","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":84,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"afccae66-cab9-4e27-adf5-65e38d73ab28","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":84,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"1f843704-40e1-49d0-870c-a34bf0472af4","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":84,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"a01bf50d-2806-459d-bee9-e70941c283ab","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":84,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"b6ee0b34-1337-42ac-8ad6-539d557bc40a","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":84,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"5f5b6b7b-915a-44be-bc52-8b15aea2fb20","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":84,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"a6a791ee-f020-4ba8-a839-8f21f27a93a1","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":84,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"7210751c-d265-4a12-9df4-8778876090c7","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":84,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"ddaa625b-b5cf-499f-98cb-1ad43a796eea","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":84,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"36cf036f-aaa7-4463-b321-fb90b96cac8a","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":84,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"5fc6dc33-da3b-4228-b4f4-a00003a37820","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":84,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"8dc43a73-6ab1-480e-bd01-fae2a2c4770e","block_type":"box","text":"of principal because of the sequential payments.","page_number":84,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"ee464e08-76bf-40e1-bc83-8461f4fa7876","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":84,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"c357d2d1-ae7f-4a86-a274-971511a4eebb","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":84,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"2b7498de-64a0-479b-9ff9-a1cbbc1cb7de","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":84,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"bc4537e5-14ee-41c8-a2f7-85615d95dddf","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":84,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"ab747552-b15e-4644-90dc-25a945ffb9a5","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":84,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"17baf2d5-4b79-4f3b-9dab-2c7f883d6063","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":84,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"9eb0da57-539a-4d41-96d5-c2c6b1575cc3","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":84,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"e404095c-4431-43cf-abd3-d007d77d3332","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":84,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"004532f7-5370-45a2-a457-359fcf70c7cd","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":84,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"73ca3fc5-f0a6-4c9a-836d-29dd9d334eca","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":84,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"1627e2f1-3a57-4ad4-ab6e-07bff4182da0","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":84,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"3fef6520-08fd-4a18-b193-0d413fcab3d9","block_type":"box","text":"securities of any single such entity.","page_number":84,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"c75375d7-7f98-4604-a27d-f866aec837fa","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":84,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"af5622b0-0521-4eec-8533-a50c8bc1ade1","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":84,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"225562bd-b943-4e9b-b33a-1b0979369ef3","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":84,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"171c9fa9-6239-4740-a6e8-7ee3883ab928","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":84,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"f2cdfde6-44ce-4fb3-9710-b92775d8bdbf","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":84,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"fe7e8081-d6e7-4e9f-9414-b94c4ffed033","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":84,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"2ea85e55-f01b-4f84-aa52-8411f11a920c","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":84,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"d2c07138-b4fa-4941-a846-09b34144ae17","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":84,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"d5b1b0ba-634e-411f-8fa2-85af8db11752","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":84,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"b074754e-88a9-4d43-be70-8a7831b89127","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":84,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"e63ab1e6-9885-4f3a-8d84-e372f3953237","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":84,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"c89cc40c-8ad5-45fa-a42e-b94b64d025c9","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":84,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"4629d461-c758-483f-bec3-9783374799c6","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":84,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"0295dfe5-6fee-43da-92dd-c65f68d78232","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":84,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"3832bbdd-6223-43c7-8dbc-67b33a4b103c","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":84,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"c80e570a-9bda-4704-8c09-e06fbc3c9914","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":84,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"039931d8-f2cd-4c0c-95f4-ff27de42347a","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":84,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"75b10d5a-91f1-47fc-896a-975bfc2b3976","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":84,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"15974cd4-b6e8-4d25-94cf-7062a1a6934d","block_type":"box","text":"classes.","page_number":84,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"3fa7ff3c-d200-4f3a-afe5-6528db75c627","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":84,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"8569868b-d698-4c38-9deb-36c551768caf","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":84,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"d5bb4288-aeb4-459f-9cd3-dacde3ef1cd5","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":84,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"603d4c71-a237-423b-a2cc-2a4914e11f27","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":84,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"d84e1302-8ad0-4942-9fcd-354a8da19645","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":84,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"72f9d924-e6c5-4b0e-ab3a-360481cd3783","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":84,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"24b9fda0-6c5d-41a3-bacb-8089c09403df","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":84,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"2a2bdb39-18ca-48c6-a26c-a9a1c60e2ce0","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":84,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"f799240c-44d9-4d0d-9716-78a021eea69f","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":84,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"3846e925-41b5-47bf-9055-a322f44abecc","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":84,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"e3b50b78-dbcb-463e-929d-f27f6ca498ba","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":84,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"183b8986-aa75-415f-850d-950b892eb791","block_type":"box","text":"to a designated benchmark index.","page_number":84,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"9b4fdaec-f33c-4fc8-af52-ba5fe912a29a","block_type":"box","text":"II-53","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5cfc5d61-5147-418a-8bb3-becd2b4cd9b5","block_type":"box","text":"NM1026U-5978945-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c7a68ecb-feb4-4ac6-9cbe-9d6d87f25dd2","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":85,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"edb86d16-7b0e-4755-af04-9de03c1a80c6","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":85,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"225930dc-8403-4d4f-8ed9-a5ccdae624e8","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":85,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"2dcd5b5a-e163-45ff-8c1f-d3c4e0e1ccdd","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":85,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"535beb60-d3c1-4ab3-baaf-44ca94b0b182","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":85,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"2bc4188f-9ba1-4423-89c4-59800425d166","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":85,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"aaa7d76d-e551-42bf-9f36-3ab9bdee25ab","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":85,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"6107b38b-23d4-4065-aaa1-a5450e98804a","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":85,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"2cd51cb8-a4f1-46c3-847d-4c8b3e7fb32a","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":85,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"041b8b63-c9b1-400b-b867-07ed6b547b2a","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":85,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"bcbee17b-0273-4ac3-8e91-7f29845649e1","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":85,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"7e580c7c-1106-42ec-ab20-57f477e87ed2","block_type":"box","text":"CMO Residuals.","page_number":85,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"fb6f8233-9ba0-4598-bc1c-9a56a4971b15","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":85,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"d2a0b79a-04b9-441a-a356-2fe59a8bc585","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":85,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"8cacf8bc-8f0e-4126-a1db-6c4feeca406f","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":85,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"4ebb37c5-56f1-40c3-93a0-7fb7c1a891bd","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":85,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"a934abb9-35cf-4698-84b5-ac002c006ece","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":85,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"6a3f4e20-1999-4064-a588-6da3c298a28f","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":85,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"783eb46f-41fa-4486-8cde-65ae3e6f75de","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":85,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"d9b980bc-199d-4375-b636-5f1392a17792","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":85,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"3aec2b45-bb06-42d6-8521-7f730f8ea9a2","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":85,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"a1abd0ff-f6cd-421a-a16b-a5420127eb19","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":85,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"a0658ee7-4eb2-4a14-bcb2-4f3b73cac450","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":85,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"f6523af7-98d7-4074-9214-b7a44cf02d65","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":85,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"9a017526-d2b7-4b17-ba63-7cb66ae61f6f","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":85,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"281d5dc9-0cf1-4b13-a2be-72ae64e5e61c","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":85,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"e7d2f5ad-f5f1-4239-829c-fa2a7f1dd882","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":85,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"44c35107-772d-463e-96b1-43479b0e1b45","block_type":"box","text":"a CMO residual.","page_number":85,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"bcc19bd7-131a-4234-a69f-c1bb6fbf3875","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":85,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"180cd6a6-4f9c-4989-9bc5-3b7c32b01a13","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":85,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"622cd09b-0230-4b85-9bfb-8af20bc2d0cc","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":85,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"6d473fa6-5d23-453c-a8fb-06a326acf4ad","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":85,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"5ce79c48-e1d6-4e5f-bd6d-47442561cbc0","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":85,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"424f911d-b4e6-491b-acb6-4647f866ae7d","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":85,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"8509901e-0cb2-4e3e-8945-9145154600f2","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":85,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"d16fb8fe-b546-4a70-a438-5edebd045510","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":85,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"2ad35d4e-ec03-4f01-86e3-a63d0146b77c","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":85,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"748b375f-d6ab-4723-b74d-e3cdecbe202c","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":85,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"6d6a426e-43f3-498e-81e3-12671e3e9ada","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":85,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"e04e539a-94f2-4b49-92ca-2217abd171a6","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":85,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"41a9bda6-a89e-47c2-8547-be7c4377bbb7","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":85,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"7f2cea9d-2876-4467-8540-145d4cf293a3","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":85,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"da09857d-7c24-426b-8a1d-611aa06cc36d","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":85,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"208fc7af-f4ae-4584-ae5e-7f5567a1a5d7","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":85,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"91556f62-50b4-4c7c-9278-0d73e90f965b","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":85,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"6e3fa122-9e4b-40f3-b0d8-8b3766aca20c","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":85,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"51e2146d-3dd9-4ebc-90f1-a1af82d76228","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":85,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"c50c5453-d818-4b10-a987-5f617e0b26d5","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":85,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"5de67956-8c7d-4f6e-a46a-d43f72eff0cf","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":85,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"86c8db0e-1eda-4d6e-8996-f573e345abe8","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":85,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"7fbb5ed2-5e37-460b-b84e-6e65f79dc1f2","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":85,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"ba1fd70b-4b3f-4154-8c4c-d80cdbec4df1","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":85,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"cb2539c1-cf77-4ced-a3bf-9ab5b7fed3ff","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":85,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"361e6221-2e7d-4710-80de-306332819ebb","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":85,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"bc052d6c-f78a-4e16-ae67-86bbafa41e32","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":85,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"92418738-1732-4c2a-8afe-705ef49a062d","block_type":"box","text":"Tiered Index Bonds.","page_number":85,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"ef7577eb-cf92-440b-ada9-a95cb3fbec19","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":85,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"cbf95123-dd02-4a26-9d86-62b1b45ef990","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":85,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"bf77a3c7-554c-433c-8e45-48be06b7c32e","block_type":"box","text":"II-54","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ccf47158-738e-4354-9813-6eb035ebedab","block_type":"box","text":"NM1026U-5978945-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"23a282da-46df-47ba-b422-5778d6c38f07","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":86,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"522afe1a-2b11-4d5b-b6ff-0cd587f118b8","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":86,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"244ce431-6359-4507-b97e-1973a4a8a42f","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":86,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"2a0a83b0-9b28-43c8-a5ec-eafe3f9008db","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":86,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"fa480a27-7061-42ea-a1e1-73af941b4c6b","block_type":"box","text":"that of a fixed-rate bond.","page_number":86,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"f93095af-3c96-40b8-b9a3-6cae335d15b2","block_type":"box","text":"TBA Commitments.","page_number":86,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"6c3226b7-cb40-45fc-ac10-38b5ce2f4915","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":86,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"8a860035-6b49-4b8c-8373-798204dbb490","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":86,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"884b2ba5-f58b-40ab-8eb0-674ba145d7ca","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":86,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"15d37891-7f9b-4ccf-88d2-c1722c4a390c","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":86,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"92a3699a-73da-49c5-97fa-0abe1a605af2","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":86,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"77788459-bf46-4db6-bdcb-a0f8a07992e9","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":86,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"de25dd77-a852-4a7a-ace4-546b4670d78e","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":86,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"59a340ee-fa4b-46ea-9884-03b3cbc46578","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":86,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"fcba26d8-ba6c-40fb-a2b7-53e3968f51ab","block_type":"box","text":"below.","page_number":86,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"51cf7806-92b0-43de-8393-c2fb57b38518","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":86,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"140aeb26-13ab-4948-a0e8-20ccaea1916e","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":86,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"89b3069f-1d8b-4e55-b7bf-57b28a5ac591","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":86,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"59d02ee3-8c78-41cc-9487-0ef7cba492ad","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":86,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"7b63edb6-51a4-4676-bcf3-5b901bb8e7eb","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":86,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"3aaa92ce-e821-440b-b8c7-8b7d78a1e160","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":86,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"62402a57-7db6-4782-8b51-7b65b1a1e9ea","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":86,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"49b96400-3d52-4c1e-a24c-c41b9b2ee8d8","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":86,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"d31a9b33-d2a7-4806-9386-0c3ce2f36c17","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":86,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"c2df4e42-5812-4327-9196-efc4873661e2","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":86,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"bd9c41b2-728b-478c-93b5-1023e51d8502","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":86,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"108ad4e0-c0a3-4adf-a034-0acf989fcb87","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":86,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"18e24ac8-9882-4f46-a3e9-a33b5acc28fb","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":86,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"08b68058-458e-4a37-a987-29fc551073cc","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":86,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"e941110f-7572-4acd-b520-623c181d99ad","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":86,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"5f86aa4f-1c28-4353-b9bf-736bf9a83efe","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":86,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"08b14215-45d8-4f0d-b633-351122e4dcf8","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":86,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"b9842e05-9840-4b25-aafb-ddbe34a67d6d","block_type":"box","text":"securities in the forward transaction.","page_number":86,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"826bcb2e-c339-4adf-9f9c-abe8e314b74f","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":86,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"bb0b1f31-5928-412d-9820-00565bf2f724","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":86,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"cc6be06e-afbb-44fa-b1e0-c6b66cfe1971","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":86,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"e3211cf5-af3a-49f5-9beb-fdc3e00020da","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":86,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"cc2cbe89-1200-4869-b79d-1b62654d8927","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":86,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"a8358cae-3a45-44b3-8e20-2ed25cb40be6","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":86,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"e990492c-9d20-40ce-b319-a074711e3e10","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":86,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"4165fe16-5d99-41fd-ac9e-dbf3513646fc","block_type":"box","text":"securities (","page_number":86,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"40b69532-c099-45bb-af36-4ca1131c31a8","block_type":"box","text":"e.g.","page_number":86,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"73b8e596-ddbf-4489-b8f9-bb350b4a5dda","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":86,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"887de491-c307-420b-a3cb-b0d387818288","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":86,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"b7034e65-c2a0-4e2e-a591-4db2920ae206","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":86,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"4369af25-2b1d-4889-934f-e880ecbd1b46","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":86,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"a2cb2612-a062-4eca-91f7-ab0e80a042ff","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":86,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"6375765e-1e82-4eb9-9929-7a69c4d5032e","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":86,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"445c3dec-002b-4192-b92a-1225df912531","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":86,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"d61d302c-8f67-44cd-8ae1-5cda9d252053","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":86,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"5f649a9d-1c23-4a81-8156-c4c9cdb09e9c","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":86,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"a3634c22-cf8a-4bf9-ad93-3a511aaeb4de","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":86,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"b52d4f8f-a991-4b2a-b388-e6fb1a7e8ddc","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":86,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"ac11ea41-f788-4b17-8b98-bda13e986b43","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":86,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"80dbd100-adcf-4711-9fe5-d5969acd95a5","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":86,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"5227514a-0631-45f9-82f3-58f6f18a2fb0","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":86,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"1c4ed5a0-e8bb-4640-aa0b-bdbdaf5a4738","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":86,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"2cf1f1be-2c9c-4aeb-a33d-dcc28c4e5238","block_type":"box","text":"Municipal Investments.","page_number":86,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"adecb4ed-a5d4-4a84-b7a8-a3db50102749","block_type":"box","text":"II-55","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b6559e6d-736f-4af6-b8cd-363dc6c09307","block_type":"box","text":"NM1026U-5978945-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e2d9255a-1f97-41ca-9ba4-d7a8517fb546","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":87,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"861dca7e-63d0-43f5-900d-ee7d20a02428","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":87,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"68ea4b12-678d-4bc3-b87b-d5a16442c2a0","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":87,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"a06b9c4a-1c86-4686-8af7-c5ed97a99b7f","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":87,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"438dc6f5-ba9d-48d4-8651-02deaf32be00","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":87,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"d828f2b9-d8df-476d-8243-9c43fa31de8d","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":87,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"09715db9-49f9-401f-b56d-9c77dc3d557a","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":87,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"04966c7d-07c1-4a65-9d40-ca93e41e184f","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":87,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"5955742d-453e-44d9-a88d-7e3f5e5e09d3","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":87,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"87020736-1581-41c5-8164-257ad947fb08","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":87,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"5f81caf8-2450-4ba8-ba12-6bd4f9fe10bb","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":87,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"0b8f88c2-3583-4e70-b745-a95a23e1096b","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":87,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"686882b0-1522-4687-bd27-c28a63e13048","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":87,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"da99222d-12e2-4b70-a587-141fcbea1be8","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":87,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"020340fa-0ca5-4fa3-84a9-22904cd30cb7","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":87,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"2eddae2a-1f57-45d4-bebf-3861182542a6","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":87,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"cb2ad091-d3db-47e7-a120-ab9e5879a7e8","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":87,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"8ce062da-edba-4254-827a-9214ee9c50ce","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":87,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"6204bf13-0dd3-446e-9f3b-d525c4c1cd00","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":87,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"18c66a7c-109a-4233-b211-8778ac1eece2","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":87,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"08d83fb5-52e9-473d-a1c2-2a7197879d11","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":87,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"d3176016-17d6-40ab-8ca2-2e1c0f45e18a","block_type":"box","text":"The risks and special considerations","page_number":87,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"4fd00457-a330-4f8d-9075-b7fcf2c72f93","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":87,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"905757b3-92ea-4e49-942e-dcb24fb0f64a","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":87,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"10161c09-5b73-4cec-9c50-ff9f895233d3","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":87,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"bd5c1495-adab-4223-8b37-8e48a99f6b0d","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":87,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"ab307eb1-b0b9-474e-a0c8-662457ea77d9","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":87,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"3eb75092-dac5-46a3-b14d-7ab7b52fab65","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":87,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"ff960264-f92c-4783-8748-12da667a0ed6","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":87,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"c236b843-6c80-47b5-b310-ff02341fe023","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":87,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"962999e3-7067-4cbe-bba3-89dca4258aaf","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":87,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"2ae94677-4288-464f-9331-886e8ecd8be4","block_type":"box","text":"II-56","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f78881a5-9a0b-4be8-a304-4dac652fd98f","block_type":"box","text":"NM1026U-5978945-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a5225f52-2dbc-497c-bf2b-d01d92258db6","block_type":"box","text":"Description of Municipal Bonds.","page_number":88,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"f7d25495-518d-44bd-9108-927f15fc0836","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":88,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"474eba88-67ae-43b4-84f5-6d9624d13dd6","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":88,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"a69d53fa-768c-47a0-9842-11fdffc2c4ad","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":88,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"6d2b0b72-d385-4526-818d-1ead43414ecb","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":88,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"4151f16a-4881-4c06-81ed-53b356404305","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":88,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"880368ef-d04c-4cac-afa8-ef0762a0371b","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":88,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"20c9b83c-67dc-4bc3-b3f6-c534b655ca8b","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":88,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"c691a2d4-2f2c-4f48-969b-9ea287739455","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":88,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"89110401-41a3-4b3d-b2b1-82b06ed546c2","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":88,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"9b14f496-56ed-4f11-b75a-d48864ececeb","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":88,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"db0613d2-79f9-49b0-a2f3-fc8481b29d04","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":88,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"4facbb35-c7cb-4aa2-b2e6-fbea20e361e0","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":88,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"4b3c8218-399d-4b47-b0d4-11bf8110f0ee","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":88,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"2d03beba-fb30-48e5-889f-b635f6bfe0d5","block_type":"box","text":"General Obligation Bonds.","page_number":88,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"d62995fa-dcd0-4042-b69f-fa0195c9b029","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":88,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"be66dbab-5a65-456b-930f-cb76d3eedc74","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":88,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"359d6e96-cd71-4d0d-88fa-e58f19b0f0b3","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":88,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"33e809ec-5486-4448-9ea3-5eddaf64cc88","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":88,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"b18fe5d1-6f8b-4abb-80ff-3579eaacac9b","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":88,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"659e463c-7196-4526-84eb-11c0658cbbe9","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":88,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"09b2815c-ebfb-4256-8036-4a41bd7efc8c","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":88,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"e0e78763-9f27-4601-a23d-d1af2d1898be","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":88,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"87267f68-92da-4e95-9457-ea3911bd297f","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":88,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"b57f9b1a-8de1-4c98-80cf-5f5e0756bec8","block_type":"box","text":"Revenue Bonds.","page_number":88,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"503165b3-5bb2-4874-8251-5adbe6253155","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":88,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"d442436a-e527-43b2-92f9-d7c0e460e03b","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":88,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"3f4f9fe4-1bbd-45e9-a721-4d4bac24d840","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":88,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"c967f5be-522f-457c-8b8f-2014d3e2f75f","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":88,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"2ef35996-9f72-4eb6-b24f-e3a739437355","block_type":"box","text":"viability of such facility or such revenue source.","page_number":88,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"94e29887-eeb2-4630-99bf-bbe0e49ce877","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":88,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"0b6a9fe2-1c3c-4bf0-9b8a-a4f207935c77","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":88,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"1e98a8d4-dc35-4a6a-bd34-85b5db8f302f","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":88,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"fcbc41ff-d95d-44e6-947e-0d67a679782e","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":88,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"3a6fb7d5-a46f-46ed-944c-fa44dba287a1","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":88,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"d523aef9-2101-4124-a9f3-86309359daf8","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":88,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"37f1035e-9f2b-4f37-987e-dca9fd6a271a","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":88,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"0326b8d2-c005-4cc2-a4b3-f6c9d756e08c","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":88,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"d3209496-322a-4bcb-b0b2-a05d0dce5cc0","block_type":"box","text":"PABs.","page_number":88,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"267be853-c137-4b83-802c-120ef3e17685","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":88,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"425184d0-466c-4775-b19f-854c7fc29c3f","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":88,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"2e9659bc-2881-4d50-b3ae-2aae9e9088cd","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":88,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"2a39d920-4f77-47dc-b33e-3805762e2139","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":88,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"e85e8061-9ff2-4d8d-8c27-0e2f1ae43ef6","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":88,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"9b41fbe9-6fa1-435f-bcf2-fab50299f81b","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":88,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"04e4f93c-78c7-464d-b66c-2a31445253f4","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":88,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"e0ce7b60-e2f3-4901-a9cf-1f07057c582c","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":88,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"c180fa7a-1111-4860-ad7b-007a748ab0d7","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":88,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"61a6e37d-486c-4d67-a84b-56ff5c45bd76","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":88,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"eb05a666-d13a-46a3-96c5-92696292d0f0","block_type":"box","text":"the particular facility being financed.","page_number":88,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"42fc5c25-db11-4de5-b4dd-5eea0e5880a4","block_type":"box","text":"Moral Obligation Bonds.","page_number":88,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"0b88628e-f322-4b76-a61a-39207983111a","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":88,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"bb6f4813-4606-4ce5-aa3a-abddfd744c08","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":88,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"590f78d7-d3d3-4295-8a9b-2c79fe871509","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":88,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"8cc310cc-02e1-491c-bd09-b324c774e149","block_type":"box","text":"that issued the bonds.","page_number":88,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"dffdf233-3b17-405f-a7d2-aa67acd0007c","block_type":"box","text":"Municipal Notes.","page_number":88,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"0797558c-5590-4361-9305-2c2a25574010","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":88,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"af9943e5-46ad-4a5c-8c82-e26bb546c082","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":88,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"7f9b61b8-3fa4-4d57-89ed-e1b8ebcc0b2b","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":88,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"fdf9a2b0-d95d-4b8a-b91f-1652e253d545","block_type":"box","text":"II-57","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff2cb858-ef88-4dda-ae07-a119b34e404c","block_type":"box","text":"NM1026U-5978945-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e7f8baee-0da9-4f27-989c-0659320cd97a","block_type":"box","text":"Municipal Commercial Paper.","page_number":89,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"91d06ca1-9802-4baf-9142-4324bbd454d9","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":89,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"0d38bc33-6438-42eb-915c-55db66b672d3","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":89,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"424f4c0d-a940-419f-ab36-4a2b73532aab","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":89,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"c7c94271-1fa7-47b7-a07f-ba65f339678d","block_type":"box","text":"Municipal Lease Obligations.","page_number":89,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"a03a828d-b993-430e-b073-6298a9ef94e8","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":89,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"e115c2b0-e0e0-40da-bef3-5fe5da40d9af","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":89,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"cd19758e-ed4d-4eb1-a6d0-1a18fb4ee361","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":89,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"83386b91-2a52-47d2-b263-256c7b69498a","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":89,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"84f86776-667d-46b4-be29-434f459d4f3a","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":89,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"121af260-ec06-4ae0-89cd-8f5c3f9a4e4e","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":89,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"3757462b-990d-42aa-a08b-46c874b26791","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":89,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"673ac369-ea59-416b-aa53-c9da9d363708","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":89,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"bc76d55f-88eb-454f-9309-65b2de27653c","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":89,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"22792261-0ce6-4101-8776-fcdb7e453e81","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":89,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"44a23efb-54e7-465f-9a6b-3349588c981e","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":89,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"b314b69a-5837-4501-858e-b224a99398db","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":89,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"4777d325-4ad6-4811-bd59-06825381352a","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":89,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"a3497829-f03c-41c8-8faa-69bf6ddbdcc2","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":89,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"3d3bac1c-27b4-439f-af38-68c5b1c6cab3","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":89,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"ad733e31-f0b6-41fb-90df-3ccff24c52f8","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":89,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"4bc045ef-12ec-4a7b-8926-0f6b4a32dca7","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":89,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"2961d010-9680-4991-a2fc-c03df07ddbc0","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":89,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"c69a07d2-6b64-4de6-8e93-23395a7af7ad","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":89,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"27545298-2e7d-4ec0-b305-dc82a58ff54e","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":89,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"83a63036-5eed-4e77-855e-43b6fd9799c1","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":89,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"d8037964-aef4-4504-91ca-7e0d6b2d9b2b","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":89,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"f6c9f150-6f5e-439b-ae2b-3c1178eea0af","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":89,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"b3e410c2-5156-4fc1-ba2d-669c9ec0b509","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":89,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"a874b1e8-2f34-4cf3-9117-6a34e8040765","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":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"b03d92a4-08c5-4de8-82a9-39a3dd4d3945","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":89,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"67dd53e3-41e4-4c33-9fa5-b22ce5dba418","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":89,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"a3f24c9f-08ac-492b-b56a-43fa56b37132","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":89,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"290b2326-e188-4320-8aab-fe3628f58c74","block_type":"box","text":"Tender Option Bonds.","page_number":89,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"b5a470a9-8400-4fad-bc03-d4c98e6c14e3","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":89,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"2496805c-ce65-48ed-a6f9-63db2514b29f","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":89,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"7697e4b6-122e-471c-861d-1ac3e9833545","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":89,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"f75b78d8-04ef-4417-a270-adc80bc8a3dd","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":89,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"5b115fa7-2e60-41a6-8815-7ba02fe7e552","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":89,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"a36f67a4-6ca5-4eaf-ba48-0b0bcb0cd51d","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":89,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"ea1e4130-61c6-4258-89b3-b409c93cc617","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":89,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"af967b7d-061c-4677-ac31-e3f33bda21c9","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":89,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"f7da2ce2-be27-4c30-9b0f-7dedbc7def7c","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":89,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"d022c958-d675-49c5-9bd6-19324d60c839","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":89,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"02f9a974-0bce-4405-8d01-fb03192dd7df","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":89,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"d5a35024-9fea-4853-8caf-ad08f1b1a09d","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":89,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"eb1bc0b3-f81b-4120-ac11-8887faaf03dc","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":89,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"f998315c-4e21-4471-83ca-073db937d5cd","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":89,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"934e1b88-c9c9-446d-8327-60dbcb6f0d64","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":89,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"0df67db5-8797-49fc-a53e-425aefcf6f00","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":89,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"033a6c3a-27e5-453a-a79a-105df0d73ea7","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":89,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"3d7216d6-6195-465d-9e4a-cabc1d086071","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":89,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"5bc8974c-cb63-415d-bf19-88f430d8ad43","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":89,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"ca34dd1b-5c0c-4847-b0b9-2fdf01e90b8c","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"ace5b7e7-5b21-45ff-a44c-76751003be8d","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":89,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"8a640fa1-33d7-432e-bfbb-e19fe5f06fac","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":89,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"09d8a88e-05c7-4c86-a54e-61b50e25fc38","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":89,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"ba9a6f31-6f89-4249-97da-4c5a714be9b2","block_type":"box","text":"participation in the TOB Trust.","page_number":89,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"d78da81e-4b4c-4ce1-a111-02e613e3dc34","block_type":"box","text":"II-58","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cebe5d7e-c2b4-4471-afbe-21bf5e0f1eec","block_type":"box","text":"NM1026U-5978945-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"328b270d-b2e7-42a5-9cbd-a95afa1db107","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":90,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"88d245c7-7db5-4def-aa62-bca25fa5d806","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":90,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"ea8a015b-cf17-4e11-bbdb-17922aca8ce9","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":90,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"71cbbcc6-2d9e-4e6d-acaa-f9defff57bb9","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":90,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"ef3601fc-8b9b-4f93-9a95-6f1804399feb","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":90,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"9278a74c-f372-4f1c-b23f-ea7d1545b459","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":90,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"1ce47336-67e9-4ee3-88f7-0079fc21cb3c","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":90,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"55c313fa-a5aa-4825-a498-dfe6315233bf","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":90,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"b7bc5541-1b6c-4220-bf0e-af8ca69b9f4f","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":90,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"c3437f10-e48c-4bd6-9721-36895dd1f846","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":90,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"46b459c3-424f-40ef-9702-c161907ef33e","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":90,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"b6b8753a-3578-4831-b7a7-8aacfbe6dadb","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":90,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"73116323-4844-4f08-af1d-5be972c21c4e","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":90,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"8dbeba84-30a3-4879-86e7-94f0ca58688a","block_type":"box","text":"issues.","page_number":90,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"e133479f-fe6a-47f6-b17d-7d15b648e824","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":90,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"1f72d21c-ac6a-495d-853f-5e21fa5b8a76","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":90,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"2e6ff788-c14c-42c4-a325-8a99318e413b","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":90,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"6d45d490-395d-44f9-8040-85b19e0a5b7d","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":90,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"92071a63-5503-46fe-ab7b-ea2e4dfccee8","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":90,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"ea9dd64f-d3aa-4c7b-a600-7ebc954e9c55","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":90,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"1a5bb19a-2eca-4359-99d3-534b6ff40855","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":90,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"54536e0f-1f67-4630-a877-c2a44c86e279","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":90,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"123661bb-650d-4c72-883e-19cbf452aef0","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":90,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"4d5c085c-fefa-40ed-bf2b-2aa9579b726a","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":90,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"5096dbbb-3a41-4e9f-b86f-49a8a92f18ed","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":90,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"506c2b8f-4af5-48e0-a2ae-9525287e52af","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":90,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"9027b85b-e8a4-4583-896e-5f4653e72853","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":90,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"ae71eeca-4c34-4d89-9dc0-63ef227f11cd","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":90,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"9670732e-dd25-43e4-9f49-db2c48f18b0e","block_type":"box","text":"i.e.","page_number":90,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"bf3c4242-3f87-4547-94c2-e88b9220c77a","block_type":"box","text":", the Fund). In contrast, in the","page_number":90,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"87df0bdd-3a86-412d-bd55-eefed643ed85","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":90,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"30ccd167-a62d-4673-a8c5-ad5b5fb663df","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":90,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"9ad6581b-48ea-4a01-af26-9ec75d0ae0f8","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":90,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"fa4dc33b-20dc-4312-aeac-96a6b77d4294","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":90,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"5e1798d9-fd53-4e6d-8955-22ce36023f87","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":90,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"4e742c6b-1f54-46e4-b342-a97035e982ef","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":90,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"7c7b5758-5a35-4aa5-8032-1bbe5423f39c","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":90,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"3f3e8a99-3a7b-4eaf-af5f-39a6990f7fe9","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":90,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"1a144b84-40ca-4214-a748-c3c1f19003f3","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":90,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"b3f6d1da-edf8-4e67-b986-b72dab667a6b","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":90,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"c6e2a06d-2cdd-479b-89e2-62b9969a9555","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":90,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"47522f27-8b55-471b-892e-09b44b0262ac","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":90,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"db42cfe5-34ce-4fdf-876b-3d6fe4dc92c2","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":90,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"c697c310-7a6d-4989-8e8d-3271b881b468","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":90,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"601d9472-70b1-46e6-9eca-9b034fe7618f","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":90,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"60170cdd-6054-4faf-8694-2feb5cc4a2af","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":90,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"57d71743-17a5-4ba2-9c9a-660df4566c30","block_type":"box","text":"Trust.","page_number":90,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"2c46f97e-37be-4d27-8de8-e95e70816b4a","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":90,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"77d9b0a0-1598-4c3b-831d-26a281b51025","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":90,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"7e9385c4-793c-4e28-bd87-60899eceb9a5","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":90,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"89dd489a-06f2-411e-8aff-5fe8b35d4fc7","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":90,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"b457357c-da67-4152-b72a-f57c04ec6c87","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":90,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"ed0d3490-4ea4-4526-aa3c-474e9241b013","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":90,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"1280ff61-a2df-4560-b7a9-b914320c3fd4","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":90,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"f28fb507-9372-4335-97b5-286cfbcd30ff","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":90,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"52e4b9a6-e57d-431f-8d3a-cbe56903f4fb","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":90,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"59d4c26e-1ce2-4183-a2e5-d9a028c6d29f","block_type":"box","text":"II-59","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f17cf0b2-cb3c-4a9f-b86a-a9b24fbe9eb3","block_type":"box","text":"NM1026U-5978945-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a103856f-aa5c-47b5-bec6-b7bdb19f5bc9","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":91,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"4b27be8e-056e-4f24-9ded-cc3e47da2ca4","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":91,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"de6e8c26-ca60-40d2-8949-5cc56139f745","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":91,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"fdc28be2-06e2-4bfa-a8bc-2fa3d8f38960","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":91,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"662da02c-da8a-4553-90a0-c73d0d43d6b1","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":91,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"6b6462ed-abe7-4b93-a353-2dcf33a282bf","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":91,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"fa60837e-9b1b-4431-bd6d-ad4a89eb6266","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":91,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"b9638f37-ccd2-4b63-a1a1-5691b2ef12cd","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":91,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"cadefae4-f535-4fc8-8a8b-c614a4a63d5d","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":91,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"ee5c56ba-27b8-4ccb-8650-515831c7bb94","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":91,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"b325f1cc-7ea3-4c83-986d-ea003e152b34","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":91,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"49e71717-4b92-4912-bd18-c7b61e798d7a","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":91,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"95011f73-f755-4420-9cb5-7eeb8dba2fd8","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":91,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"24625e69-715b-427f-8b9d-fe4ae6e97555","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":91,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"13e5bc05-8648-44b4-ad80-760ea7c67989","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":91,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"70124c8c-a2f4-4ed4-bc49-353ea1f072a3","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":91,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"2f02f550-36ef-41fb-ba7b-3e0c9b78bb8e","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":91,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"682433be-3023-4b50-aecf-5bcaba4c92d6","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":91,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"36029992-be87-46c3-9693-05a49c01456e","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":91,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"9d77cb3d-ff5f-46e1-bfa4-f2e410ee3ceb","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":91,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"9886522a-cac4-4dc2-9d78-a3409adc86d6","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":91,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"38a91a5a-f4a2-41b7-8208-fba6c36e1509","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":91,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"c3e54738-39c5-4b3d-bb7c-4f71f7d26185","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":91,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"c740640b-9140-4ad6-914d-754e73fdf304","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":91,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"4d0b4eb0-5936-48a3-9f2b-f2d368479d71","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":91,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"d95adea4-a49e-4e55-ad95-002f208a8317","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":91,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"94b2c7c7-a23f-401f-b018-38c2b81484e9","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":91,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"24309959-58eb-4c72-b90d-3364f1632d2e","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":91,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"f74e4046-25fe-487f-bea4-c5b0f6201a7a","block_type":"box","text":"i.e.","page_number":91,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"4ecafc70-af84-4f49-a371-f50bdeb6bfb6","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":91,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"bf9a7abf-2d18-4cd5-a3a4-8331e1eed823","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":91,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"2605cdd5-7dbc-4245-81b1-b8906613e7f4","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":91,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"95f5c53a-e93f-43c0-a185-987c04f76a59","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":91,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"ecfe6e35-29af-49e7-beeb-8be356f36ab5","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":91,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"68ec9c04-45a9-48c5-9fda-956b326ca6de","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":91,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"1307b335-0a47-4485-a122-9aa7470bdbc3","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":91,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"523cded3-de18-4dc3-982c-89a70545942d","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":91,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"83cab47b-7c1e-4781-a767-ce7e616e7c88","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":91,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"1a323f05-c8e7-4032-b4ea-e8530a44be4b","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":91,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"2703275a-7647-4539-8eda-fb026323a6ba","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":91,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"fd772375-ff19-4f12-9813-279eef60ed4d","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":91,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c333c744-a0e6-40c5-ad32-016c6db34261","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":91,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"80f6a395-8311-408f-976b-61484124eef3","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":91,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"fcf21a16-6967-4451-b3d1-9a7137efaa73","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":91,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"2030277b-e438-42ce-a10e-903a0dd02764","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":91,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"ebd84b49-bfe8-43d3-a4a0-294c38ab085b","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":91,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"511b715e-627f-43f6-923a-caba976ce7c8","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":91,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"0338d981-9787-4329-829f-bf7e76644aac","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":91,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"308eac28-9a77-44cd-aaea-dc7a0ae57212","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":91,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"20d49911-1cde-46aa-a913-9a1e0bd5e68b","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":91,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"6536bd7a-36d6-41a1-b4f2-ecca26b89812","block_type":"box","text":"market is not yet certain.","page_number":91,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"1c32121a-0624-4b7f-aa37-0ba9c5b1e9f7","block_type":"box","text":"Yields.","page_number":91,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"7829750a-f39c-4c7c-8ca6-1a636b76658d","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":91,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"00c5671b-a49c-4088-8549-08bad0ce0de9","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":91,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"4895f177-93bf-42aa-ac91-f4412a72b749","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":91,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"0ee1a818-a27c-4c94-81e9-064e2457a919","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":91,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"e4f97a77-0d3a-4647-9482-c45d65d931ee","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":91,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"e749018a-6dca-462b-80d0-f7467683c5a2","block_type":"box","text":"II-60","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de18fee9-f8c6-48a0-a268-eebb467251c9","block_type":"box","text":"NM1026U-5978945-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1b031213-dc11-4bc7-a8fd-59857124b1be","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":92,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"ed07d1df-8336-4dda-9e56-61558ca7b92a","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":92,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"05e5bb90-d83e-4350-89d1-8deaaf3804e7","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":92,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"85151603-662c-41e1-b800-0cd143dd7eef","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":92,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"7d226720-5bc4-499f-9627-2b7e1622f3b4","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":92,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"27be5889-7f7c-4321-a9af-2485720811f5","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":92,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"3b1ad2f7-31ea-496e-a07a-e554013fa1c8","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":92,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"91502a21-9b87-4321-abb4-85b70b58dfe3","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":92,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"c24b961a-6296-4093-9bf1-1c15b14067d4","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":92,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"254ad070-5ead-496a-aa86-4ab124cd630c","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":92,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"f33e85af-5bc7-4809-ad05-e15456346a34","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":92,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"bf9f3ac0-9535-485c-82d4-de6ce05422e3","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":92,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"6d95e6f6-7e9e-4232-8bf3-74b4b06beae5","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":92,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"e2e1c56d-a707-4b7b-b1c2-fd19477301b2","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":92,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"474592a4-d03f-4eab-a491-82d2d1a8511f","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":92,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"260ffffc-8149-4463-bfba-da74d98ebd76","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":92,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"f9b01e26-28a4-4c19-b22a-93a8fac79f2f","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":92,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"f75926df-7eb9-4cc5-99a6-a013371eab8b","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":92,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"d743e452-b421-4f4a-897c-9e72adf379ea","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":92,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"ac1af367-0b75-489a-a9c4-f41e890dc954","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":92,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"3696628b-3d35-405e-82fe-b93a69cbec21","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":92,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"ef5449fe-3057-4165-8ca9-9b16d504aa53","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":92,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"4f23ea3f-fdbc-4482-bdad-5c07d62c457a","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":92,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"3300392e-4e11-47a9-a436-caa59665a8d7","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":92,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"6b382282-68a9-4df8-97d5-d00890d5452b","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":92,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"f4e7fdbd-3206-40f4-a83d-8dfc338b541e","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":92,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"67473a4b-ac3d-4d52-b40c-80cda72786bb","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":92,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"d895ffd5-fbd6-48a0-8274-c42d1d2811bb","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":92,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"3f48b0ff-21f3-41df-8a1e-bf732f658b1e","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":92,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"33d5f2c1-6765-4ea3-b11d-b6bf29ca1b00","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":92,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"809bb017-ce5e-42f4-81ec-3a912d3274ee","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":92,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"8a2348ab-dfc4-4e4b-8d60-9860c1d02f67","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":92,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"7852eafc-6aab-4587-adb8-4a29f6389183","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":92,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"105c6664-ff80-483b-8ad5-e0023641a80c","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":92,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"b5fb2189-4e11-489f-8ff3-26a2d14ba532","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":92,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"e41effae-455c-4353-8643-ff7b3094ec91","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":92,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"74c72792-703a-4ccf-b031-300ab8179c7c","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":92,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"148575b7-0497-4fd7-ad74-40fa015cc466","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":92,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"31245834-66d2-41a5-83ee-1d909a230e7e","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":92,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"3e86f2f9-620d-4564-93ec-a81d5a5271cf","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":92,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"77e50d8b-5249-40e7-8223-b56d513e0e42","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":92,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"7c131b77-a5e5-4d52-af37-31e3e5ed17d2","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":92,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"63ccc4a6-214f-4524-9215-57ecdaf96432","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":92,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"a8aa6cbb-23ee-4240-8506-6fb8d6c780e4","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":92,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"4340264b-275f-4f1f-b0c8-4be209242a77","block_type":"box","text":"Call Rights.","page_number":92,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"7ef6ef29-af97-491f-b2be-28bea132f8ab","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":92,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"f0c57215-199c-4390-9b1d-bbd5f015bcb1","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":92,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"51e1ed21-6fae-4c79-9080-7c7996075ad8","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":92,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"89eea5f3-0df8-4c67-a7e2-260bcf7c1000","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":92,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"e689b2d2-7f97-46a8-a28f-29b877a07492","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":92,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"49078a8b-6e16-4a89-87c8-549d2ced0894","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":92,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"520d7d01-b1e5-4f2b-93cf-6e902e6ea917","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":92,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"5ed8562d-361c-4f5a-8136-8af9e11b282e","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":92,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"11dc9580-6991-497d-962c-955681140f7b","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":92,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"6b3a7f27-8dae-4704-8819-d09b41b3f490","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":92,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"f2eb2b93-cd7f-4e97-a3d3-4afc2ebfc7c3","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":92,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"961e0b63-8a72-4416-a0d9-29619e469bf8","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":92,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"4ecf18bc-b2c4-4216-9dc9-28b1ce129cb7","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":92,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"e6c8a5b1-1726-4418-9457-b2dd89e35988","block_type":"box","text":"II-61","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"268888ac-3377-41d7-b831-d219d4a646fa","block_type":"box","text":"NM1026U-5978945-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ced82d22-7dec-464c-aaa2-533fa25ebb2b","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":93,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"ae80c24f-64d0-40eb-8732-59b01214cf4d","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":93,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"c9ee9d91-7144-47fe-9a57-7c2b14d94e8a","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":93,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"38204bca-bdf5-4d34-ae45-7d806d7fc33d","block_type":"box","text":"i.e.","page_number":93,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"b8df2b36-9377-4e7d-a278-3c8b826c6e63","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":93,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"d246c4ac-cb3d-4c1d-85a5-436b1307c608","block_type":"box","text":"rates).","page_number":93,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"6186b8c0-9269-4569-abba-b660b9984b25","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":93,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"328f8762-13ff-49a7-98ae-bc931a68cbfe","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":93,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"71eeb8c1-8ba0-457c-819a-43f73041fe2c","block_type":"box","text":"e.g.","page_number":93,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"fec58c96-c52b-4a33-809b-16278b728b17","block_type":"box","text":", an exchange of fixed rate payments for","page_number":93,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"0d0fe965-9774-47ca-84bf-33fbffd66215","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":93,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"dfacbb4d-94d6-4fdc-b80d-78314ff7e15d","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":93,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"8e9f08d6-e9a3-46bf-b9d4-73ea5326a4dd","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":93,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"db2fb684-b3b3-48f1-9949-94f394caeb7d","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":93,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"79e2f9cc-bf16-4fd5-8351-c15789fb8c78","block_type":"box","text":"with the same attributes as the swap (","page_number":93,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"8a819ded-b0ab-4ccf-b9c6-9a387d5a5824","block_type":"box","text":"e.g.","page_number":93,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"236e9b38-8ed3-4b1f-a9fa-99befbcf9207","block_type":"box","text":", coupon, maturity, call feature).","page_number":93,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"9d9c24a3-1f02-487d-a3dd-731c39d53d61","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":93,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"7766ff2b-d956-4643-b9bb-32a2211612d7","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":93,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"137f01aa-c6ef-4f37-8043-c454b69c8a22","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":93,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"11b44116-09e3-41c3-9821-40bdcdf2a656","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":93,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"e9e76e11-0b62-463f-a9fe-cc24869019d6","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":93,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"9d15a0d9-b12b-4f9a-976c-145a0866b3e9","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":93,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"4926ec16-e851-4fb0-ab8b-f158e1dc4292","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":93,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"7b0eaf90-c1a6-4992-a114-bc489b715864","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":93,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"e3ee5ede-481f-4a8a-b17b-880f1bab84cd","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":93,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"82037814-8ee2-4348-97f8-986f0dc0ea35","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":93,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"9af651ff-0a19-4c95-aa9a-7e8ddc6d937b","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":93,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"7fc77521-73d6-4941-9a69-e947bdab8c1a","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":93,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"bfa5bf28-cde8-4da8-9732-7f7043529064","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":93,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"fe94a602-c6cf-404d-888f-82fbfba7fcb4","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":93,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"f1290a19-d03f-4bc5-924c-9d6488b7c95e","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":93,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"f9b457dd-aeb0-40f3-9ffd-d78dabfe4c23","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":93,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"6ac81832-689a-4562-b5c8-9861713707c1","block_type":"box","text":"Insured Municipal Bonds.","page_number":93,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"130b532c-c416-4c3e-82ab-b4ff4d7045aa","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":93,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"a30331d9-5b2c-4ef4-bb68-25f87d468735","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":93,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"be59cb89-eb6e-49f8-a336-91f0f94cc315","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":93,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"1ff370d2-4a61-44c1-98f9-5fe2f9a573fa","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":93,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"e73ddeb3-5726-4eee-9cc2-76f3a59f421e","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":93,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"a0016476-0ad5-4cac-84d5-5de39b05ea57","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":93,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"b9f96177-d1ca-4b88-81d5-23108ac18975","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":93,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"481923ec-6dcb-4f6f-82c4-64f53153f0f4","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":93,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"1a5b4fc7-f90d-41d3-aaa4-3743b8792705","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":93,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"2920df8f-304c-45b0-b12a-3d1699a511d0","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":93,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"9c73146a-5fd8-44ee-8414-62e2b0102e44","block_type":"box","text":"bond could drop.","page_number":93,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"9a738470-6b66-4b86-b46a-1abf11ea7748","block_type":"box","text":"Build America Bonds.","page_number":93,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"08f65f2f-5642-4a29-b3ab-c57e2734998a","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":93,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"1eca6427-3de8-4018-a17b-185b57d35d43","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":93,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"1428ae8b-844b-4a9d-a9a2-0d9d4ab82383","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":93,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"1ce63ba6-c78c-4471-961b-3c4add324229","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":93,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"493b85ef-f9aa-42ce-9f3c-afd8afb3b444","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":93,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"cf873e7f-8271-4772-9a0f-9c0d7598a658","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":93,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"2b685bc7-dafb-4944-82d0-c46fed0a1ed7","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":93,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"079e05fa-3e29-4416-95d1-fd4f2686660a","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":93,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"94d4c73a-f454-4dd1-8b51-e1eb09cca413","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":93,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"e677f98a-6db3-413b-b6b8-06e197cfb19c","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":93,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"47837c63-bf42-4c1a-8e92-6e45d72f67e9","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":93,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"ebf4947f-2d04-4c3e-a668-ece19dbb4b9c","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":93,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"025b76ec-0599-4781-9b79-a4a83c15a227","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":93,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"1ceb5eb8-3681-4808-943d-ee53bb79b4c8","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":93,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"91440e98-c128-4e93-a6ad-92870502bb8e","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":93,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"78bc1ed0-f14a-4fa1-a501-cf0c16c3f8c6","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":93,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"243dae9e-010d-4574-beb2-eb6e75f090da","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":93,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"895e5bf2-aa7c-47fd-a732-8c631d18ff9d","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":93,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"27e840dd-c6dc-4f7b-862c-66f85c427607","block_type":"box","text":"II-62","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f76ae226-ecde-427e-a7e7-a55391e06ef4","block_type":"box","text":"NM1026U-5978945-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cc6caa1d-90ce-48c0-b7c6-807553e6c21c","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":94,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"58e9de2e-b2f9-45c9-884e-24f001c723be","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":94,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"03dba9d4-114c-4b15-84b7-1db8838ae68c","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":94,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"cbe718ef-cd7c-4fde-a2e0-5aafa9dd729e","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":94,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"bdf0e3b2-f2dd-46ba-902e-3489244ee31d","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":94,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"79a6a57e-7d36-447c-80ed-9fa9480124ca","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":94,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"c7cf5478-dc84-41bc-8b1b-da5e4e051d01","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":94,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"3b3491f0-2799-475d-bbf4-660615728ee0","block_type":"box","text":"their face value to the sponsor (","page_number":94,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"c0ae509c-d1f9-42e2-8a4e-4b50c871c874","block_type":"box","text":"e.g.","page_number":94,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"c779f2df-0d6a-4e9c-aa2f-066b6bb82feb","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":94,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"7edd5360-d7a7-4ac3-97b3-061540486df2","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":94,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"253c5b11-874d-41df-b50f-39b15f165490","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":94,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"3bc4ff79-646d-4798-a8d5-4c94892ae39c","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":94,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"b748659f-e1fc-4440-96cf-535e22e11f8b","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":94,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"df36fc34-796c-4107-973a-a1bd0e30521c","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":94,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"5516b50d-11fb-493f-bfaa-a40fd911353a","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":94,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"f8304c36-f02e-4a5e-a044-1bc086ee81a4","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":94,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"e4187681-283a-4b0d-8252-1fbc0817dc62","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":94,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"fd6061ec-af42-4eae-9f42-c1de041c0826","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":94,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"0e5775a1-6a90-4d32-ba47-7c39cfb27c3e","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":94,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"ab15e6eb-d65d-44a8-bbe6-750bbb01fc6b","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":94,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"6857c237-2098-466a-a657-c4af32382aba","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":94,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d2bd1ee0-96d0-4670-a43d-ad7d9f574cd3","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":94,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"dcb505ce-fbbf-4dd9-95ae-f58a37d05113","block_type":"box","text":"such opinions.","page_number":94,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"83a9d1e0-4c65-45a5-8a27-8c4320bd4c02","block_type":"box","text":"Operational and Technology Risks.","page_number":94,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"c8ff585b-63ce-41bc-9586-7eecfee50ffc","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":94,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"3acd39df-d5e1-4705-ad11-409de98aa458","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":94,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"753b650b-1967-4cf8-a72b-91eb517f61eb","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":94,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"6c7994a5-b360-410b-9fb4-d54cb014a403","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":94,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"bef9ce26-8c9a-4321-b681-f6110fc3198a","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":94,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"0f593229-f5f4-42e8-8aff-469e50168fb8","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":94,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"835a08e2-7ad3-45fd-8e58-afabd2f97ec3","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":94,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"b8226208-321c-42ac-a4be-50b119d1ebf5","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":94,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"0a1e59bd-7162-45ac-ac31-8a4b212514b8","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":94,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"15de2326-fccd-4dc9-9cfb-dc580962f691","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":94,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"0dc09b85-21ff-448f-af66-c413e08f91f0","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":94,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"bb46bcbc-c0ca-493b-9761-85532184e938","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":94,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"16f3ec43-f956-467a-a75c-9345811a08bf","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":94,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"87183c0d-5068-4f6c-8376-b9c801c51233","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":94,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"af92e18c-81b5-477e-8727-094c3bae299b","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":94,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"f7ddd35c-7ea2-448a-99d1-35b280111f60","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":94,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"fe4c0085-dfec-41ac-bb19-0800e6be8cdd","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":94,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"b59f471d-5740-42cb-8267-68f832a5c406","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":94,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"7c5b896f-a8db-45c6-b035-7e95169bc8dc","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":94,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"0229819f-69b9-43c9-b471-9823cb0784a7","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"5f575bbd-cf05-4168-a283-dfc175cf66b9","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":94,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"f50dd837-dc8b-4629-8d58-75c495796ad5","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":94,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"7edf8e60-54d8-4304-a6f1-ffebe53159f6","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":94,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"5858b144-5cef-4dd8-8cba-07a0f0e45914","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":94,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"0ddafb6e-9f3c-4ab0-9b7e-de0066a2bee7","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":94,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"9059603a-24d5-4f61-99b8-8503f7e747a8","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":94,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"9436d8e4-20a6-4ef6-82e5-e9af796913e3","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":94,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"4aad980f-5686-4cd3-8030-68fcfdb317d9","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":94,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"df276088-f253-4c74-aff8-b86a41e1b16a","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":94,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"f50bc493-274e-4549-9cf2-507adb8328f4","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":94,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"c4a25f39-4be2-43fb-acaa-e1eec343279f","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":94,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"65869262-152c-41d3-929a-61ac69a318bf","block_type":"box","text":"infrastructure assets.","page_number":94,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"b6ea64f9-dc01-4cb5-997a-5835a8ba8fed","block_type":"box","text":"II-63","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5b3d896-c4ff-4780-aef7-9740b3e2d775","block_type":"box","text":"NM1026U-5978945-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a0b561cf-f7e0-4814-8e9e-09c2e6eb7c28","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":95,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"c0584018-ca91-4de0-a743-f222ac2c2189","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":95,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"b0cd25b7-a1dc-4f8f-8aa4-6ff9724ad056","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":95,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"ac208092-ff7b-498c-8cdd-af55de75873a","block_type":"box","text":"or services.","page_number":95,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"b4dbdb09-428f-4e72-9801-a5e14b579084","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":95,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"78dce80e-0ecf-4feb-86cc-8eb037cf27d2","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":95,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"e4ab7a7f-165f-4cfe-b82d-1bb208903362","block_type":"box","text":"other third-party AI technology applications and users.","page_number":95,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"d9f0592f-4cbb-41c6-b0eb-f2f036fc8518","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":95,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"345470cc-0d74-4717-a2fc-9e82d58523df","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":95,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"23d8ffb0-7e19-48fe-84b8-d5796930227f","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":95,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"3eb6a1a7-62ed-4630-8f23-5097a8e4d5c5","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":95,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"a9b1fd87-0d74-4186-8d51-cd97e6c8e58d","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":95,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"a697574d-d333-49c5-9217-2e0c3069f13a","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":95,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"46809796-f50a-424a-aea2-f85e8162e24b","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":95,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"d04cc273-f066-4a74-b203-be12bf20538a","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":95,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"e4b1d9b4-ffd6-4e05-8684-a29ec2a1868a","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":95,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"6a5b7eb8-0f7f-448f-913e-9ff0507e28ec","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"469cd0d0-6cb2-4b70-b3d6-4bbe9c821c47","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":95,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"03387221-0741-436d-86e9-aba7bef9d718","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":95,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"09f0dd84-dc5c-4963-a0c8-33791ad2c4f7","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":95,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"25d144ad-db1f-450a-ad92-f48d50c68657","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":95,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"6d380748-8591-439a-bfa8-92e6f5525e7d","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":95,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"5355859e-e79b-447f-8fce-4462713f32f0","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":95,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"3d9bfba2-90db-40f2-9b56-f8d3fb159861","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":95,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"44353aee-5209-4f8c-ba67-f45f3bb84354","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":95,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"55f95ef6-f40b-45ce-8f15-fce2f519eb35","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":95,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"e6a75615-1914-4e8f-b605-03ab09f3cc02","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":95,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"349c768a-2dea-4971-acdd-35c5667f4286","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":95,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"a0be934c-5381-4529-8c32-ad28c8ec9db9","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":95,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"d678e8b0-ce2a-43cc-aefa-abf636029c66","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":95,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"eccdfdab-c83a-4f0d-99f2-e6231dd9174d","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":95,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"84b567fe-189b-4cdb-bbd5-b367650a46cb","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":95,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"0d566e86-dc5b-4586-8d38-79ddf820af3b","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":95,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"9cb90c04-2658-4290-bc84-2bbe22d90fd9","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":95,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"4e7c4833-e5b6-4e86-9cf1-af6192c39cea","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":95,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"d7a9b905-c056-46ea-a589-acd5fd716471","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":95,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"48e87b6f-c7e9-4737-889b-c3a8760e3d05","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":95,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"f627aa79-5741-486b-a7de-bba6433ecfcf","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":95,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"43b7bd71-e1d8-47fb-9005-dada9d199417","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":95,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"2506086b-61b6-4151-9157-777eb97d7ef3","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":95,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"ab24f062-8a2b-477e-8663-afe34bf05087","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":95,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"a42c4a2c-29b0-443e-9cf3-8b16ecd115e4","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":95,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"a72e60aa-650d-4dbb-811f-087bc90af30e","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":95,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"a307d799-002e-49d5-a645-ca3e795139a5","block_type":"box","text":"resources to monitor and implement required changes.","page_number":95,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"78079a20-3f0a-4e4e-aa5e-3fd832caf380","block_type":"box","text":"Participation Notes.","page_number":95,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"f62c38f5-9bef-4c2a-bc39-5207fbba97fb","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":95,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"ee7250d4-1f56-403e-a473-fb8e90d16f1a","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":95,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"d598dd5c-534c-43a1-b421-f7fe9172d6c6","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":95,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"815fb6ce-8f24-45ac-8033-a5f866a50758","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":95,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"dcd6f8ef-96ca-4835-8477-72ee84ebdffa","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":95,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"8e0e05e1-3131-478f-afb8-1032faf32071","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":95,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"dc03e0a4-c51c-4678-878d-eaff0a6cddb3","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":95,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"96d8dca8-ab5a-4437-8a89-0d4ae792c8af","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":95,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"0af4432a-a699-4f18-b1ba-c20ab1767658","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":95,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"2703e113-027d-4bf8-a053-ea04e6419b1e","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":95,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"69a23f3b-69a2-4ed0-b023-b076e3e74220","block_type":"box","text":"II-64","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a7b40f8-11a1-471e-971d-c5798a8be764","block_type":"box","text":"NM1026U-5978945-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"32ef620f-b9a2-4226-87bb-915e80f05e64","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":96,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"1262f774-4c80-4f35-a8dc-e608ebea46fa","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":96,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"c45bb98d-970b-4a5d-aaa9-ec03658fdcd1","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":96,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"0f9fb1da-90f6-4c05-8201-778e8a989b43","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":96,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"2801d683-fd39-48e2-b851-cd1d1d18a81c","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":96,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"a6c96319-0021-4b48-8a98-c6a933898b77","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":96,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"6257dbe9-a2be-4206-a25b-6bda88b8a30d","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":96,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"29be8331-1d1b-493b-a478-785e314e9ebe","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":96,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"ca18f452-0c0a-46f5-9f82-222d73fa4ab4","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":96,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"677bf725-703b-462e-899a-ecc24907eb0c","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":96,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"84e2b83a-79f6-4d98-bfbf-c3642caf54d1","block_type":"box","text":"Portfolio Turnover Rates.","page_number":96,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"26a18112-a460-4b97-8b94-3d5ab8e55726","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":96,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"27afd370-59f8-4c63-a48f-2e0ce8e0b0c3","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":96,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"73eeafed-c3b6-4f98-810e-e549dc4878e0","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":96,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"2b7e55f7-529f-4cdd-8fd6-623ba45f5513","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":96,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"a0437ce1-1067-453e-8b49-aec75d76a82e","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":96,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"148e3016-8ce2-4411-88b9-52adc80f3f48","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":96,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"f330ebeb-74ba-4a95-832d-31580895f5e8","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":96,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"5652ab2f-b52a-4d63-9d49-5ab696515396","block_type":"box","text":"i.e.","page_number":96,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"2f27db90-235a-441e-a5ea-a024e86d5bd5","block_type":"box","text":", 100% or more) may result in","page_number":96,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"05553fd9-f533-4e15-bb07-7308b36efb31","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":96,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"88c2bbf4-2f67-4e45-8c02-d8429c4a696f","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":96,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"62f7a07d-fad0-4f66-832f-d5cb09e41cdc","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":96,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"65859cc1-aa44-48b6-ba9b-99476da01ae8","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":96,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"5aef5850-329c-44ab-ac96-c13e69fdbb96","block_type":"box","text":"Preferred Stock.","page_number":96,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"57003e3b-f6f7-422d-8d5a-b8f340c86a5a","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":96,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"428c127f-56c7-411c-8119-37730d9db921","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":96,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"710146df-a160-483b-8690-1b136be48790","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":96,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"1772bccf-aa40-4515-a428-2de09c707cc0","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":96,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"8ea1d129-867d-44c4-b213-56e9d08bc820","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":96,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"878a5bc1-3884-4718-91b0-d52d37a0348d","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":96,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"3d1da774-a767-42a0-80e4-49fc9203c695","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":96,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"351b0acd-a69e-4e79-9c5e-c7eab4c52d95","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":96,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"aae4c1f4-c580-49bb-bee5-da9952511d2b","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":96,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"6155fb4e-aed8-449a-b162-55d6c710cc69","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":96,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"a5baa534-85cf-459a-ac72-e46bc3ed0da9","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":96,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"dacc8904-a9ba-4ce8-8504-b4ac289b73e6","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":96,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"1f6499e8-7d10-4baf-8e91-cd3e47702fce","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":96,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"9a1acab4-64ed-4db2-bd0f-21d6e6d9eb45","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":96,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"d7b29ee5-6409-40de-8fbd-45a54b203ce5","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":96,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"c0a066a0-3db7-4419-91c3-11148d463e90","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":96,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"419e1275-77d8-4095-bfec-9d4356811c6c","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":96,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"5c3bf6b1-5564-4b00-bf3e-a33a2ad3dc9f","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":96,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"f4e3de91-d554-4d91-98f9-38accb466267","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":96,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"10acd2b6-7004-4598-b079-fc0cac2d9fd4","block_type":"box","text":"Trust Preferred Securities.","page_number":96,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"df37ce3e-5807-4691-af49-eba8a480bf5e","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":96,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"7a6483bb-c4d8-4a78-bd72-093e76f5da2d","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":96,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"79ac87d4-7395-4556-9851-7f7ce598ab09","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":96,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"c776107d-723c-4f5c-9f11-f92cd6b75bae","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":96,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"20294740-e416-4479-97cc-086ffb28b9d2","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":96,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"2af9a9e8-64b8-443e-9be4-0b1b6beea0d1","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":96,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"544833f5-755c-4472-962d-bc7ada1e7260","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":96,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"db30247e-afc1-4e64-8e38-77220d9d2809","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":96,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"86862dda-e56e-4b1f-b27e-53ddac77cdc3","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":96,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"4950f6e4-511c-402a-99b1-622fe67793ff","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":96,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"e89079db-a91c-463d-9bff-6b2957894e0b","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":96,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"6f38eebd-2bb0-4a32-8893-92aa9cb8c8ec","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":96,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"4c13aa4b-4551-4446-bd0f-d134efd0778a","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":96,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"bd1477ca-04db-47cc-9fc8-a476cca1423d","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":96,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"eaeed9bb-1b53-40eb-b44b-d59f1ac0d4b5","block_type":"box","text":"®","page_number":96,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"8bc0f80d-508f-47e5-821c-1392f9391a8e","block_type":"box","text":"”); monthly","page_number":96,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"54b802ae-cc58-4124-8bde-44c5fc155b50","block_type":"box","text":"income preferred securities (“MIPS","page_number":96,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"2b2c86e1-3811-41c5-b51a-3a7ce368e92b","block_type":"box","text":"®","page_number":96,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"dfc75803-1914-4d5e-946a-baf9e3c8c8f2","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":96,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"aba17da5-47e9-4343-babf-137ad39c9fba","block_type":"box","text":"®","page_number":96,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"16434d42-a620-467a-b818-d293a981bcab","block_type":"box","text":"” ); quarterly income debt securities","page_number":96,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"a7ed9a73-b0f1-47b6-9265-4cb04dab2ea7","block_type":"box","text":"II-65","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b6fb18d3-1441-4834-a8f3-d2b4b1f61b50","block_type":"box","text":"NM1026U-5978945-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"efe0ad3d-7158-4b0e-8db1-95b6718b0f11","block_type":"box","text":"(“QUIDS","page_number":97,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"e43bbf9d-ba7f-46c8-896a-9568dcb80d1f","block_type":"box","text":"®","page_number":97,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"b12deeac-b7cd-41f4-ba6d-ffb05000657e","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":97,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"623683e0-ecc5-478b-9dbd-1e95ed704ee3","block_type":"box","text":"SM","page_number":97,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"5f25cb9a-f17b-48fa-afff-e55445e1a397","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":97,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"e748f14e-90a2-4511-8aad-f4fb568b15c6","block_type":"box","text":"®","page_number":97,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"597e855f-4e51-4224-8c94-42fe343bf906","block_type":"box","text":"”); public income","page_number":97,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"98b081a5-ed55-45a6-a001-5519b9008182","block_type":"box","text":"notes (“PINES","page_number":97,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"22445a1a-34fe-4756-b998-2b17c491c945","block_type":"box","text":"®","page_number":97,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"7c707d16-9897-4a05-b3be-19283199c590","block_type":"box","text":"”); and other trust preferred securities.","page_number":97,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"4d5e83f1-e493-4ecb-895a-3050c215f4c6","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":97,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"64c25c88-2267-4452-9d59-511a5054b226","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":97,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"bdf0543e-a8f4-4c84-9d8f-ee8c4465017c","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":97,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"3028ba6f-a41e-4b2d-93d3-94ea269e1d69","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":97,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"2a19da33-0d1a-493c-897f-52a8c3e6af61","block_type":"box","text":"regard to whether all payments have been paid.","page_number":97,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"33f4bd4c-4049-4c91-bd0e-cee422e3783a","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":97,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"42346fc3-a660-4938-af22-13a6ac6da545","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":97,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"d936f32b-9a09-41ba-bb42-15e52d7d5b77","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":97,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"b22ccd33-0f21-484d-9184-789b6b148861","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":97,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"f7f06d0b-3b68-4b1e-a076-821fa3d4b566","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":97,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"d86ebbf9-60f5-402d-a542-6dae07d8a5ef","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":97,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"26a1d7ac-0be5-4c0a-acd3-4a9ddc98e203","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":97,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"30ab5d4e-3b4e-4502-a19e-c127584a564a","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":97,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"41389cf2-0374-4624-9441-eec7394cf129","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":97,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"ec80e7c5-2f6b-4f14-a98a-f704500b094d","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":97,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"f816dc39-5fa9-4ae5-b598-424b431918d4","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":97,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"1b16aae8-4333-4a39-a45d-d7f39f6aaedc","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":97,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"d68a3c3b-784a-402e-9f73-2d883cf0db1a","block_type":"box","text":"debt securities.","page_number":97,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"38ecf9d7-aa51-4886-8792-df49ceaf8d0e","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":97,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"4dafceda-f781-431f-b87e-202cc952414c","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":97,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"53bfe102-7b29-46ab-973d-ad38718351dd","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":97,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"cfa577dc-07a1-4e80-9854-0ad012df94d3","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":97,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"9e2f75b4-3e20-46fb-9b35-6ad840a21922","block_type":"box","text":"geographic areas or in specific property types,","page_number":97,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"20f4e383-3956-4277-87cb-673d2dfeb613","block_type":"box","text":"i.e.","page_number":97,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"4013dd44-ae78-4c44-9218-4fcf6197346c","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":97,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"4afa9813-227c-42fa-ba75-97f0b134b9c6","block_type":"box","text":"buildings.","page_number":97,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"1eca5072-2b88-493c-a23f-a4853160b319","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":97,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"e7a29c48-8b1d-4de6-9151-51f6f2c5fcb3","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":97,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"aa430c2d-ac97-43e8-ba8d-faea9d8daf96","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":97,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"160a026b-d9a0-4c40-a6a5-0f489cc463f8","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":97,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"d02bc384-f778-419f-9509-9fec344bc44c","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":97,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"a8c709a4-d85c-44af-83ce-b256fbf16137","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":97,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"e4c4a7e1-c74b-4876-811d-29dbce58a351","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":97,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"ee05f67b-e5fe-430e-a204-1f242b02556c","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":97,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"ec5af274-1fe1-4623-a3ca-5e82ca06abb6","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":97,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"9f6c9652-68b9-4d2f-a0dc-e81c1289e757","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":97,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"44077c00-1225-42c7-8429-ff4273cd6504","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":97,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"dc61f165-3d9c-46e2-8326-659ab3c64193","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":97,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"312e204e-b94f-40e9-b34f-9aa06f2e73a9","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":97,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"2bcdc23c-de4d-4d23-854f-87669c424a06","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":97,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"22b07810-1a74-4a78-b714-fe3e737a660c","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":97,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"72f67919-778b-4a32-a752-332d2f1ab5c6","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":97,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"7261d1be-1ada-4fc4-b5c0-11ca8e50a9de","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":97,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"e800533f-15b2-4c23-9d28-c1d193a199cb","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":97,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"56c99f4c-dd3b-4c7e-a559-92b8a60a0443","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":97,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"deffefb4-fce7-487b-9e4d-9728b21d8ff7","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":97,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"4c5e2027-1912-4e8c-a331-19cbbe48251f","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":97,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"4f8af6d7-1484-4a38-affa-1aba5db60568","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":97,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"5f08eab3-6ea4-4f5c-9775-8a39ef74d914","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":97,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"4efbf671-91a5-424b-9e3a-31e5d14f90ee","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":97,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"9cff0349-9caf-4776-ac13-5c311ce5f9d3","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":97,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"b0a1d192-db36-4846-ae47-363a2812616c","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":97,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"543c0f11-80a1-4411-9359-e5816e7950c4","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":97,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"8c1e41fb-7bee-4f88-a4d6-d4fe74daddda","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":97,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"b2c63503-f7e2-4e29-8f6a-5cf139026bee","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":97,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"761b4fde-035c-46c6-b9e3-6a803486fbfb","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":97,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"9249d751-a16a-4e4c-9736-56cf053da4e2","block_type":"box","text":"II-66","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"619e3252-6125-4b05-88a1-6252edfb40f1","block_type":"box","text":"NM1026U-5978945-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7c2a49e5-f3bb-4b91-a46d-fa03201b5c13","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":98,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"5ba032eb-b937-4900-bc42-59da29a5caa5","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":98,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"b8874452-b357-41ce-94d8-ea4b3f80e7b3","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":98,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"871c3aca-d6bd-43da-8ed5-77a686d8323b","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":98,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"e30aff91-ed90-45b1-a25a-c3e659a23ea2","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":98,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"2e4cb0a9-6213-4b52-87e7-a0cf9878e73b","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":98,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"0c00513f-6a52-4297-b92d-3cd70d0a5b8d","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":98,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"aa28eb21-5937-43bf-a08a-3f9be8940b80","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":98,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"c467e3c8-8129-486a-985c-b8ab2c2c69a5","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":98,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"7c7390f9-4cf8-4956-8d2b-155e5fca58da","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":98,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"c2372036-6709-4379-83a7-b63ed91b9150","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":98,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"f0beeed6-07a7-4df2-b39b-c55666782532","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":98,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"cda53fda-25f0-460d-a423-9828693a9f57","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":98,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"608ad163-ecc9-4cc1-aee6-627ecdebe939","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":98,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"9b0e7ab8-ecfa-4e59-9253-a41114b1f027","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":98,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"af0cad47-85fe-4965-9b2d-af0b9526b35b","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":98,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"3b51cc11-44f8-43dc-b9dc-a50109b62169","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":98,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"e063c714-53a3-47ce-a59e-92b44af23854","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":98,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"c565cf58-7026-453d-91c7-f3a652b685cc","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":98,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"115fa46a-0adc-4703-89a7-55585be68aa2","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":98,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"a986db88-b955-430f-9f2e-b5894d44448e","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":98,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"8ba1646a-bb7a-484d-a0bd-bb2e4fd6dc13","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":98,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"bb2e02bf-f3ea-4c40-9f9c-eff45929fad8","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":98,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"263d20c6-44ea-4dba-9cf3-d79b391bedda","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":98,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"f154e137-b58f-487e-8407-36a6f9339d5f","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":98,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"55048699-9b11-482c-9ced-a08ee306ecc0","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":98,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"61312353-0511-4216-997a-cd8f2192c645","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":98,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"eb881f92-01e9-43cc-b969-5cefc43f878a","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":98,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"76f20fc6-529e-4a8c-bd91-7527c5955c12","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":98,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"f2b40f16-9e0e-44e4-9ad3-3de61773fdfb","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":98,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"cd828cc3-6583-4f8e-9755-6df4f4212180","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":98,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"970737a1-cff3-40b6-91e2-cfd9429c671d","block_type":"box","text":"conditions.","page_number":98,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"a5640129-6bf3-4286-867b-14b1a2fe95f8","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":98,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"50e01da1-2b8c-4981-ba2f-bad1e3ab6cda","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":98,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"66258971-512e-4142-89bc-903948436862","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":98,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"a3bb4c78-9fb0-44d3-9fd6-6da55c53299d","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":98,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"3e3c908a-f719-4629-8b99-61dda767c79a","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":98,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"ed60e12f-ca91-4e05-8bc0-17b358a1800c","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":98,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"80eacc06-31dd-4105-a6e0-35a9abba5cda","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":98,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"5142b3bb-d1f4-4207-ba38-3f3a9586bd31","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":98,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"bb8126cd-67e9-4d4c-bced-8cdd513533c2","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":98,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"42f9ac62-d894-4408-93c1-86632efbfb68","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":98,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"35651477-aa9c-408f-8798-9cc98e8546f9","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":98,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"1945549b-8279-418d-8784-a282b4a827c8","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":98,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"c01b4ce1-68e4-4a7f-a40c-3f02defd4d4c","block_type":"box","text":"affected by such events.","page_number":98,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"3f2de7d7-bb86-4a32-ad03-a4bc4b62e9ba","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":98,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"0f66afdc-c860-405e-a989-df7a77f71eee","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":98,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"fc910242-1449-4471-8d24-ee0d7ad854d8","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":98,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"bf4defdc-7514-49a1-90a4-3870a1efd13c","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":98,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"b4c6edd4-b7ca-4cd1-9df9-f82ad0b67d4c","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":98,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"3db4c0e3-7d12-4d8e-aeae-e5ff6dc48dca","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":98,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"70dff917-5b89-4096-a354-6ecfb0ac1d2c","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":98,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"d053d794-a91b-4fa7-b5ae-386243f3d162","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":98,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"2789879a-ff80-4c60-88c6-ebc7df922f17","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":98,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"b44642d4-beeb-4f25-ba7d-05f2e6aaa8e6","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":98,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"72d2a073-deb4-4ef0-bb70-837eacc65e9c","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":98,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"72c4f10b-04b7-4de6-a654-82c7b01bc684","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":98,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"33f32933-a2ed-46be-a2ba-c2e8e270d509","block_type":"box","text":"II-67","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"faee0544-bc8b-4db7-ba75-08f19d15204a","block_type":"box","text":"NM1026U-5978945-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ba9c084d-b416-4f2f-b360-d134a29cc0be","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":99,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"76114684-0a40-4aff-b40a-e9eb661a5405","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":99,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"f4aa582a-1a08-4118-8e3f-5a5e08770f32","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":99,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"253f47b5-921a-4626-90bd-b92f85816d40","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":99,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"8d49e66f-2bd9-40c5-bf2a-0e669be15832","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":99,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"854be378-6072-4dc9-a695-2b1eaba364f3","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":99,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"d39a2a74-1cd5-4ea3-b3d4-0ba473aac7d6","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":99,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"fa8bfefb-41f4-4e79-8432-c6f5a1368bef","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":99,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"f7a28114-6362-46cf-9545-5ad4d4198b9c","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":99,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"ce0da65c-ebad-43f0-b0b8-16e4eb58d159","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":99,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"0da4aa5e-4a0a-4ecc-a981-a57ce1c315f5","block_type":"box","text":"investments.","page_number":99,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"90a2443a-1aed-4cb3-9e0b-569638e915c8","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":99,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"3f9fbf8b-a470-4730-a0e7-df91396aa8c9","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":99,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"da501e01-e865-4464-b13c-8d30e1243d5f","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":99,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"67085e98-a352-4b62-af7e-a7a5bd250cdf","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":99,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"a0bada8e-efe9-41b8-8f19-cb310a3a2d13","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":99,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"324f71da-a38e-4590-95c7-9be5ae6e05cd","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":99,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"bfab1d04-2e0f-449a-97fc-2d985df8685b","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":99,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"47b47374-bdce-44e5-8541-828dd0c7e623","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":99,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"77bab39d-a48d-4711-af20-ea592a43cf89","block_type":"box","text":"Legal and Regulatory Risks.","page_number":99,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"e594c4d0-6902-4e45-af9b-a518db0ab6c5","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":99,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"70903722-c017-43a2-b87f-09a39133dec5","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":99,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"64ee7bf7-7a57-40a3-9913-e97888fc5b4d","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":99,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"5e5c98d9-641a-4044-90ec-d2315a427376","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":99,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"4cbd06d1-6e29-4ebe-b4f2-d2add9029229","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":99,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"ad350ac8-2df3-4734-9135-11e5eb823aa2","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":99,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"49bad41f-4823-497b-be88-1547dd3f7747","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":99,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"9cd692c1-600d-4528-8771-86d6e34d8666","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":99,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"1df44241-03f0-4809-9e00-1c7d495fc291","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":99,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"97f1ddd5-39fd-4a29-bb20-345788e45771","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":99,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"1a0e5826-a83f-47cd-aa04-0811650a405a","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":99,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"6da0c959-83ae-4382-8999-fe750637bf77","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":99,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"720de133-3e02-4d00-a3d6-14aedcab0839","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":99,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"598867fa-4578-4c88-827b-6b8acbf2c64e","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":99,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"e32ec19d-6183-4501-a2b5-b56422a25f09","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":99,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"eceb559c-f2cd-4a67-97c4-da5923ac8965","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":99,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"742198d8-3f0b-467b-aa1f-b8617f6a2f3d","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":99,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"b24a1633-76a3-435b-be90-4715dfbc13f2","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":99,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"d8c66926-c55b-45e8-96a3-0b57bb2cd206","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":99,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"32b26781-7231-48ac-a2e7-5a480292a554","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":99,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"e761f5d1-97ad-4438-8ac0-ca9a7f66dd1b","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":99,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"ebf3dab2-443b-45ba-8d8d-82475349e9a7","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"833d3bea-f7f6-42f8-ba98-cdabff3e8ff8","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":99,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"d41041fb-6945-464e-bf6b-de368544af46","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":99,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"b53cb09a-8d48-4e00-a4f2-b66a37c84a06","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":99,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"5873be9a-727b-47ad-ae16-deb69c92314d","block_type":"box","text":"Geographic Risks","page_number":99,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"67cb32ed-e889-42a8-9426-8ecefd186c1f","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":99,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"e4692e7e-7607-4a94-bfd3-607bc486aa66","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":99,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"3029f75f-d0ee-40d8-8f45-65c439ec9246","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":99,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"60074ed2-a17f-44aa-9a1b-c332862316eb","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":99,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e9bce2ec-2b98-4ea3-bc75-0e4789f38b27","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":99,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"c0a39b75-4b11-468b-b0c6-5fefd0f8ee64","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":99,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"680dd54a-d136-4264-88ca-2d8b61ba17ca","block_type":"box","text":"Fund.","page_number":99,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"a24adf2a-99d8-4190-9a9a-d515909956f8","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":99,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"8e65ecbe-2015-4e8a-a62e-234be45f3491","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":99,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"d5a88043-8987-46e8-aa0c-f59d8b4de46a","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":99,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"46b14dec-c251-4a23-bd43-bec06faac86a","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":99,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"af8c906a-8204-4479-80df-703539dabfa2","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":99,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"4ff2c76c-4a54-493f-a165-40d9c31cdd8e","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":99,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"85e4cf74-2f35-4c31-a26c-6bd40adf9202","block_type":"box","text":"II-68","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"615471a3-3788-4345-a0e7-dbf6310a7d6f","block_type":"box","text":"NM1026U-5978945-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6965f28c-5135-4e54-95b4-ad77d6558611","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":100,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9c422972-7ce9-4593-8506-43e69c0577ba","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":100,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"191a1ca0-4e2f-43d5-8a9c-fb604d3b9994","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":100,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"9b282872-8630-4668-8a96-445ab7af7540","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":100,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"58aca436-5f9e-429b-b13b-dbbc18d4239a","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":100,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"54f7c599-4566-4a1f-b9ab-5c4f2ce7db4e","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":100,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"bc3d456b-683a-4054-9df2-253ae42367a9","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":100,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"f0d53f62-9a9f-4417-a9ea-d8efb7f89d54","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":100,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"3f8adfe7-87cf-43e7-8677-0e4d29cc2960","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":100,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"5620a2c9-07f6-4695-8958-88ddd1d3f02e","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":100,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"fef4216d-a0b8-4454-8e6d-3058c07754df","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":100,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"f6b4f309-40bb-4eb6-b344-b9d0d9ebbde9","block_type":"box","text":"e.g.","page_number":100,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"c13acde0-0a8b-4f09-966a-c3d27222a299","block_type":"box","text":", SOFR for","page_number":100,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"aac909a3-2f59-44f6-92ed-8814e3e6b8fe","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":100,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"9c14ea65-86eb-44d9-8ed3-eb3adb9b5b01","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":100,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"90c013e0-4311-4dab-97dd-24afdb221b55","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":100,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"a1b6207d-a560-41f7-b7b1-337bf094183f","block_type":"box","text":"determined.","page_number":100,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"055c4c3c-8d0f-448b-91de-0e3cb198e7e0","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":100,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"c050b50d-901e-448e-bf3f-b0e92b69b269","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":100,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"5d043997-8067-46de-bdd0-fec062674ffa","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":100,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"1860299e-66b9-4383-ac15-1a32f2aeae90","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":100,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"01ef61e7-e645-404a-ba29-5ab12d19e883","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":100,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"6dae5d12-e276-4907-ae98-a786db08a979","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":100,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"88df3bae-a799-4fcf-8246-290009dfa6d9","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":100,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"d50abb64-0379-46b5-8dfd-d51771270d69","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":100,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"74115c87-3bea-4cdf-be2c-dea9131cb3cb","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":100,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"67ef0510-60ec-4d85-9b09-ee2cca6f3d0f","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":100,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"3ae78bc1-e084-4e9e-88cd-b5b19a1c23a0","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":100,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"54582996-675d-4244-80f3-7b3475db9948","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":100,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"4c7cc285-18dc-47eb-925e-90d529f8a718","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":100,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"8ba198ce-f506-48ab-99a6-faf60bdec466","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":100,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"1f80cbb5-0204-415f-9973-40c38c1ce4ab","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":100,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"0893bb5c-1882-4d4a-b059-e546da07acb7","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":100,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"b865a88a-bd96-49c7-a3e4-223535f3ed7a","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":100,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"7d79e3e4-89c1-440d-851f-b56d690d530f","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":100,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"b6a2c41a-ed3d-4610-ac55-e8c4ad410247","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":100,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"f04da71e-2379-484d-b765-7ce12677a394","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":100,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"32def05e-1a88-4051-9833-1cd6349a71ce","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":100,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"48b008ea-c830-4dc4-9866-679d3932cd9e","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":100,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"250c7f04-2a74-4aa0-9ba4-e0190e1e1739","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":100,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"f85f01e5-2da1-4f90-8a2f-ce7609c293ca","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":100,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"42325d33-a17e-405b-a749-bbf060d72d03","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":100,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"30109c44-0d10-4151-a73a-2a0bd9e93885","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":100,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"8c1857dd-f63c-42c6-840d-f6a68e53c9bb","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":100,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"2206be0a-2de8-4968-977d-2446b82cff36","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":100,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"835d940e-7c0c-4658-8f28-7cd41de8b908","block_type":"box","text":"consequences which cannot be predicted.","page_number":100,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"9bf8c802-dcd3-4632-b0d5-3cf342affe0c","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":100,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"64a98c79-e468-4ac0-8b7c-c78d30458ad7","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":100,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"59e30415-94af-4688-9846-cdf4edfce8c8","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":100,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"7554b698-6c84-4761-93e4-44ba19fac339","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":100,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"bb2f8f2e-a762-403f-baf4-582a84dd9239","block_type":"box","text":"term of the agreement.","page_number":100,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"4626e59a-1ed6-41c0-a503-f0d3abcbe022","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":100,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"3fca60e9-d5d9-4abf-815e-13977ae969f4","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":100,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"add265dd-84ba-44e2-a1e0-70ece39f390e","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":100,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"a94834c7-1ae5-4d21-8fed-c02348a62c3c","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":100,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"8c119fd1-0a58-4f4e-8347-e7e7742ffcca","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":100,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"904e165a-679d-4411-83a1-6c5fd48ccdca","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":100,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"d2db8b79-7456-4147-a760-bcfffe5537df","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":100,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"d5d1e70d-7f02-43e1-a341-75573d350e30","block_type":"box","text":"II-69","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"06b29967-1d9b-40e8-88ca-101d73368257","block_type":"box","text":"NM1026U-5978945-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"28cdb1e9-ede2-4786-9b29-ea728adde745","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":101,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"519a32df-91f2-4b05-8edb-157fa9168662","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":101,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"87ca550a-c15c-43bb-bb39-43880ea6048b","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":101,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"5580cd7c-a4f9-4385-a0fb-99fd1172f6c1","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":101,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"346357cb-d288-412d-b48e-16cf193d1335","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":101,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"5906b3c9-74c8-4b17-b872-833c5695cc77","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":101,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"b42e80e0-f06c-4f9b-9d1a-e082a1cd3c6a","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":101,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"fe2b4430-20f9-4b7b-91de-bf7c1f3ffecf","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":101,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"4094f9ca-e481-4a5c-8343-18fbf13ed506","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":101,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"30be4326-8438-425b-9d9c-e0225423a7fc","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":101,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"49a5cc7c-58b0-4e35-8ba8-5909e2b9f5ec","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":101,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"7c0094da-d328-450f-b4eb-4760869e4947","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":101,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"a3130ffa-49f1-4c7f-a1db-edc0f0899ac3","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":101,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"3dcf5746-bec3-4f9b-b93c-93a6847a99eb","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":101,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"2c77e119-974d-4991-ac1b-1f9fea8bd591","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":101,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"bdc93ad3-e0a4-4677-b47c-fb07d68c4f96","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":101,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"1e0f7b9b-b981-426e-8ba0-7b68fe968da8","block_type":"box","text":"or by another authorized securities depository.","page_number":101,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"775da5dc-7729-4b88-862d-a974468bdf33","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":101,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"914f02ae-4d1b-4f72-a0f7-983f2e999b2c","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":101,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"4eb70d2f-d7be-4b3a-838f-8828c552e62d","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":101,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"2ecb39c1-495a-476b-90d6-0527c1ab2485","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":101,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"cc7bf2a3-1d33-4dbb-904b-b3ff09ee1dfe","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":101,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"60969ad5-a852-4cba-8d7c-a17412a46a6f","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":101,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"6bcf6acf-88b4-43f2-9b92-331278678a22","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":101,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"830e2a42-4c10-4bf1-8375-845dd53f3d56","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":101,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"13f5f1ea-5122-40ca-9643-f750743dfcbf","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":101,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"8c4fe2ee-a89b-45ff-b4a8-1ec72ae5f8e0","block_type":"box","text":"the repurchase price.","page_number":101,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"ab678df2-38e4-4bdd-93bf-c07949799415","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":101,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"a4e1f1fb-3d6c-4437-8269-501f227079de","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":101,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"f5b0a4c2-779f-48ae-a49e-978e4feced13","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":101,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"36e35757-bc8e-42a6-a218-24ab8a03105c","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":101,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"bd649538-68f2-493f-bd3e-559654c3a734","block_type":"box","text":"strategies without the repurchase obligation.","page_number":101,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"5016c50e-3373-4981-ba07-b56561d9194a","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":101,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"1aae7a36-96d3-4a2d-94e9-ef85dd22bc91","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":101,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"046f5df0-1e39-4041-bfc2-569d8a0b2369","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":101,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"9281aca0-e75f-4ee5-804b-95dee01b7f02","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":101,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"e67eca7c-4726-45a2-a244-b6d16be490c8","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":101,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"3442125a-1da3-4ac3-b22c-cbb3ce40338c","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":101,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"5d666cb6-ff72-4f65-88af-51544f6c5f26","block_type":"box","text":"i.e.","page_number":101,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"6ce092bd-91ec-4c47-8009-8c561096c14c","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":101,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"3bc0b770-b0f6-42a3-9164-f2e85da03195","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":101,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"545949b1-4f41-419e-9dfd-20ecb0530401","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":101,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"487b76dd-2378-46cf-9bbc-fed5df3f391c","block_type":"box","text":"and income involved in the transaction.","page_number":101,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"3c9cb96c-c86b-41f8-a8e3-5020e9aaf2b6","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":101,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"6635123d-8930-4652-8873-c3fdf03d5aa7","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":101,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"d4e16696-5006-48ab-a2bb-0d6fead86499","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":101,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"c58a5d5f-fe79-4c89-a6ce-3d109c92aa91","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":101,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"b9796b41-284e-45af-9393-888faa058da0","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":101,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"a9560d4b-6af4-4574-b313-efb986f5fe1b","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":101,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"f9738eee-013b-48df-8684-db76c7acd52b","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":101,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"c50f37b5-87a2-4cbd-b9cd-1df75a21c5f5","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":101,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"c7f996b9-1e4f-448e-aab1-3a0e830f5d14","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":101,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"2547fa2a-5580-4053-aaf9-6dff1cb00f76","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":101,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"dea7ef28-ccf8-43b3-b769-f0986e6a5ad6","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":101,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"55afb520-f64d-458f-8224-1c4135c5d681","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":101,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"c104a2dd-507a-4c66-a34e-f30cc05565cd","block_type":"box","text":"Restricted Securities.","page_number":101,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"390bc472-0bfd-4981-aba5-3a2bace4f510","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":101,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"d597e90a-3ef8-4f92-bf82-d59384f4e61d","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":101,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"ad2da1ad-87c6-4fcf-b426-3546bdbe0aad","block_type":"box","text":"II-70","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de2deddc-73a9-4989-86b0-b656447fd508","block_type":"box","text":"NM1026U-5978945-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d0b6d2fc-23e3-4e43-acea-d0576168f9e4","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":102,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"ce9d55db-b824-4bc6-9115-e35405e4f97b","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":102,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"b0f25d99-fe6b-46f0-ae5d-b116ae11f187","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":102,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"a49d4e74-7297-4bcd-88c8-98989f66242f","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":102,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"a88b32ce-d9a5-478b-811a-1b4a174d82ce","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":102,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"fb9e9c1f-6521-47cc-b16d-f9160361b709","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":102,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"5505664b-4c9f-42e8-a77e-a5ba46c48346","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":102,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"a8b3ecc3-7bcb-4e46-8ae0-67c5967543f2","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":102,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"9bb486b8-1200-4dc0-b104-c5db7a30e793","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":102,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"bc7f112e-6bfa-4bcd-84d9-c940106871c6","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":102,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"9162d50d-f085-44a2-b58d-ef43837173d0","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":102,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"0d03cb30-fefa-451e-bf5a-7c7722cfb23e","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":102,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"ed7ea84f-7187-4f7d-9190-8d148452dc54","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":102,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"aa354658-b5d8-4fb2-b73d-4914a9f00dbc","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":102,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"1d298754-a330-4997-8c38-9157dda8fb84","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":102,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"4d28cd28-325b-43cf-9453-657dbef0d7cc","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":102,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"78cb2b00-8b0f-49a7-928e-182b21a3315f","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":102,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"d1bf65e4-89b7-4505-b408-de5488c3d488","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":102,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"ec4cf7d8-c493-47a0-94c8-a65efd23549d","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":102,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"5c06f94b-8249-4821-a90c-a0002c099c29","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":102,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"63546e99-7f0f-429a-8b82-47412bea19c2","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":102,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"80a1a347-3459-483c-b952-a67709537bf2","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":102,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"4e6f85f5-6751-4c61-bd7f-4bea58657060","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":102,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"cec9d2b1-7716-4fe8-bf1c-7502b41eaf82","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":102,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"28e29332-9e60-4a91-b4b7-a6a953d415c2","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":102,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"487dc94e-d504-46bb-89c8-9c374d28860f","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":102,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"68665fe4-1f91-4e90-83b6-3e09e11c4b76","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":102,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"8ca1ad90-152a-41f9-82ad-0c129706dd14","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":102,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"d2c24030-6d79-4526-8490-e2c2d811ebd9","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":102,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"7c617512-1de2-4104-b35d-277cccb5c3d6","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":102,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"4bb76411-b279-43f9-84c8-359dcf5b6008","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":102,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"bcb4c46c-283b-4104-b09d-d4eb5e857447","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":102,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"e47c307f-f4e3-46e8-b61d-efc267e584c5","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":102,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"1425b876-7c1c-48fa-9688-b38b8c0adaa2","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":102,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"b2be41c3-717f-481b-98f8-04ca21cb8b41","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":102,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"eb329e34-aabe-484b-8384-f1d6a1001d38","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":102,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"836dcb85-10b6-4162-8c6b-93ff2c373c75","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":102,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"534a450a-0158-4915-89a4-dcafa91cc25b","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":102,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"fd582d31-1d11-406c-8fad-422bcbb5cc89","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":102,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"e149de6e-6722-47fd-8b88-5d5d2cd8cf52","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":102,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"e60b4123-3555-490b-8bde-528c67138229","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":102,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"b07ff109-022b-4a4e-867c-6e4284a51472","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":102,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"2bc5fb98-1dcc-4e1d-8d22-71fb1c9737ed","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":102,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"8f17bebe-9e1f-4f65-85f5-01f2156b5a63","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":102,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"3ff0dc5d-ca4c-4dc7-af88-3ee0ede1ee1f","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":102,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"510c98f5-2f8a-4751-8d0d-91f241033189","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":102,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"a19e2a16-b96f-4882-8a91-f7e736ff45df","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":102,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"53b261eb-ebdf-49c7-ba7a-fa3812f6062e","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":102,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"93b6bd71-a5e2-41c3-b2e9-b957a7b6e578","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":102,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"effef6bf-0b62-4bfd-ab59-61edee30ee81","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":102,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"78b231aa-7c33-4742-98ec-c995c0f139c7","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":102,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"e11d389b-4a98-4be8-a0c3-38f4b19e791b","block_type":"box","text":"especially as that Fund grows in size.","page_number":102,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"cc426922-e88b-4d19-ac2f-28307f3bba5e","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":102,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"ff5c0ccb-a58d-496b-b26a-70d8d932b779","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":102,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"8b9ac53b-20e7-47d3-947b-e0a52db16674","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":102,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"78f6c5d2-02a9-47d8-ac6b-c74cca1616bb","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":102,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"88ef3951-4cd7-4880-902a-41c72516d63d","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":102,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"4793bd23-909c-43c0-906d-16d389a30afd","block_type":"box","text":"II-71","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9fe32c4a-bc95-4a79-8a18-1e657a85d7bc","block_type":"box","text":"NM1026U-5978945-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6e9436f3-a227-4ae2-887f-0ba6bdb528a0","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":103,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"d1755965-a368-4c9f-a741-982e85c0b8a7","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":103,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"e9486d0e-34d2-484c-804b-a536ad31a1c5","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":103,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"38a603d4-1033-4c82-9695-60c19864346a","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":103,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"fdc448ba-535e-45cf-837e-abc10e43b888","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":103,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"79075d70-dd29-4029-a648-899778875363","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":103,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"19689c66-8fdb-4418-97b7-7a8f2ec64f82","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":103,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"748d29fa-0d17-4d78-9529-226e381e10f8","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":103,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"bdb3659d-9f6c-43fa-9080-9e607f95120b","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":103,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"67812465-4f82-4af4-b656-c321db20181a","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":103,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"8c52ab5d-cfc7-4663-9832-ec097f533bfb","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":103,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"a2d9fc98-4592-4f94-b5ae-9e9173dc61b2","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":103,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"39f7cea8-57bd-484d-b8bf-792465fc1964","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":103,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"cdf06725-0287-47a9-ab40-2ea8ed2650ac","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":103,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"e11e4956-735a-4cd9-862e-f4f57e51f384","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":103,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"92b06de4-ad3d-4a07-8774-164a1248cdfc","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":103,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"73f456d5-9a19-40e6-9ac0-e835e82520ee","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":103,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"d7713fb9-d001-4a99-a081-488480ba5bd7","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":103,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"3c4f8b97-ac0c-4c70-ba76-0e8717f948d9","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":103,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"bd99f48e-58f2-4ce7-baa7-d99c1374967b","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":103,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"d9cf6f62-c8f5-4194-890f-88175cf895ed","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":103,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"ac8d2c3b-bceb-4b9d-9bc0-03f6d4d34670","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":103,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"29cc4b8e-9327-4f62-8f3d-e0ef8f25756b","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":103,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"d256dcb6-5db5-43c0-a79a-e94bb21a0434","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":103,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"fc13fc5f-b988-4fbb-af2a-91996247d97c","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":103,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"4b41cb6e-e4b2-43e5-bfbb-fba79ab2b6a3","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":103,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"86e3fb04-5dfd-4d7f-a785-83fc3439a2a6","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":103,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"6ee88bcd-abc9-40d9-b529-78eca105f3f9","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":103,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"d6772b73-b731-49a6-83b7-429431eb8884","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":103,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"2ea2a473-bba1-4c88-8ad7-59b1a2505434","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":103,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"a56166ca-edf9-4efd-a829-8407e2be2551","block_type":"box","text":"similar financing transactions (","page_number":103,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"6bc96704-f430-449c-9bbf-14f744b5b852","block_type":"box","text":"e.g.","page_number":103,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"2392ddbc-af01-4980-9199-fa110ea956a5","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":103,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"a98900be-f215-4bd7-bbea-0ed021030897","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":103,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"8bf745ca-9b7b-41bf-a8d5-b04263d42da4","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":103,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"da4fd391-085b-4535-b626-cc5ae1766241","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":103,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"f2613a90-c868-4017-bc2b-8944c5f4c101","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":103,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"787358b3-159c-4fff-beef-2013be93f217","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":103,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"95103cd6-fe5a-49f0-a428-f78477d93f45","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":103,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"7f7e414f-5b58-496d-bec5-f466645c8fbd","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":103,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"34d52e59-174b-4140-8224-185643ffaada","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":103,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"a84b8920-29e5-4cfb-aa56-b2b40de079e6","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":103,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"da07ceb9-dfbf-401b-ac93-dffe07d2d56d","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":103,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"bf10d446-8b5e-47da-b2c3-ce27baaf8228","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":103,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"286f321f-792c-4152-9400-0e5a079bd6f8","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":103,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"0fd243d7-c3a8-4922-84a8-def43d8953b0","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":103,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"d4cbf911-9e39-4402-974d-31badf0dd5da","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":103,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"e7ab2f27-3da6-4610-98a6-375e953a0a08","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":103,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"5c4f42ac-7eef-4a19-b6eb-0c3b1ce18e61","block_type":"box","text":"amounts to be received under such agreements.","page_number":103,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"7af63807-3df5-45a2-991d-d6b66305d39a","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":103,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"e9db8b0c-b387-4b35-893d-5b801af7de0e","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":103,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"7f1e0dec-558e-43c9-9c2a-a9604e173490","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":103,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"5ee8c2e9-97b9-403a-8b5c-50dddd0e0dfe","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":103,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"9180c83f-a951-4e45-8799-5324b39c27a9","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":103,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"2e988ad9-ff22-42fd-a37c-d5fb8c61d6b3","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":103,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"871d41b2-2bae-4962-a7f3-984fd22e22d2","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":103,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"48baec29-6abd-403a-b154-40e8963137b1","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":103,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"8592f3c7-5fff-4482-abc8-12a4eb6f98de","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":103,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"4370ca3c-d8da-405f-bb1c-cfd3fece33fe","block_type":"box","text":"II-72","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22a51b0e-d5fd-46fc-8b0f-8eb667848dd6","block_type":"box","text":"NM1026U-5978945-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"25c923fb-f102-44db-9bd8-929a731167da","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":104,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"40f6c37f-acd3-4a5d-b759-d2d443326b54","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":104,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"53e21822-141a-41a7-ad27-63f911f33997","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":104,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"22c852dc-7027-4298-a098-be67d11347b4","block_type":"box","text":"Rule 144A Securities.","page_number":104,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"e1e4c537-cb4d-496e-aafe-b5fdef012b48","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":104,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"acf98427-42f2-4ff1-b505-4047196ecbf5","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":104,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"64a1321b-b419-4c50-af71-26af239f3882","block_type":"box","text":"Securities Lending.","page_number":104,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"f6c45134-7cef-4a13-9da3-16df53cf6de7","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":104,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"be0f7651-0dbd-4924-b39a-c77dec3e5547","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":104,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"c2bd4947-ca4b-4d49-a287-ad75e386d481","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":104,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"8d6e8ad1-7d3a-4e0e-840b-55a94321adcf","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":104,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"04bd1e90-9cf0-46de-9ac7-754e43ee7c73","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":104,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"46aee048-c829-406e-b12a-07f893a217a4","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":104,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"d19b8946-a760-48f2-ac81-a81a0276be6b","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":104,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"39d3a36e-6e2d-42bf-bff3-aca22d26da4e","block_type":"box","text":"the securities were not on loan.","page_number":104,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"50499692-7989-40e4-834d-ea2940310dc3","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":104,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"0211b5b2-6d7e-4b25-a841-e11e10585404","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":104,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"e99e6565-421d-487f-85d2-9b7de26129b4","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":104,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"9792c80d-43ea-4844-8f0b-df3957f3bcae","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":104,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"8831c2d5-3232-4b38-9e66-166f24d22b94","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":104,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"42e7a5d5-9831-4196-922c-ba39b74a10a0","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":104,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"8fb4aa53-b45f-4903-bdc0-d3f777596a95","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":104,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"8dabf073-72be-4b0a-ad5f-3c0f8144113c","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":104,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"0d37d849-9dda-438f-8f54-172cf9848e7b","block_type":"box","text":"i.e.","page_number":104,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"c468bd08-2f1b-4c37-8783-b5a55caa34c5","block_type":"box","text":", the risk of losses resulting","page_number":104,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"f6533261-fd68-4f76-9083-0855870e53d0","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":104,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"aec9636a-cb36-41f7-80c2-60d22282f7d1","block_type":"box","text":"i.e.","page_number":104,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"e5a83d47-d443-4b99-8b5a-8f4f0e546da7","block_type":"box","text":", the risk of a mismatch between the return","page_number":104,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"1bdf0b84-7970-45c8-9d6a-23dfbc0bf66a","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":104,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"f472745f-28d0-45b8-87bd-3c9ec455a555","block_type":"box","text":"i.e.","page_number":104,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"abc47e13-baec-4127-87fd-30bbdd83a9d3","block_type":"box","text":",","page_number":104,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"d5b531f1-0bad-4875-bfdb-b200f666af27","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":104,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"e46ab9f0-aad6-4cf3-af2d-3c5cb4fe227c","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":104,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"970a2bff-34bc-4c54-ac6f-223c74473ec7","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":104,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"661069a0-d796-426a-8568-97a4094d7f37","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":104,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"ac308f18-965e-40ee-9bff-ebd78f0c7008","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":104,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"a7ec07f8-4efb-44d4-92b7-753a5083d00a","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":104,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"1efcef4f-f80b-4ef9-aea6-ac5878504f6e","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":104,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"1b250b0a-2184-4f3b-ab6e-7212538a67a1","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":104,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"e46b8e78-9352-4c1a-b1df-f3daad63789a","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":104,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"aa68a3a0-84e2-4993-b9ae-f32695f2a4db","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":104,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"508b2f18-4085-4c2b-93e2-c5b4fd7e108b","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":104,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"6894fb82-d297-4e9e-945e-3ddd062506c2","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":104,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"5729e60f-dcf0-4ec1-80c6-46f72417c86a","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":104,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"dd7e0d99-d96b-4e6e-8a42-e8a0b5674e39","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":104,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"9ddfc8d4-bf7c-460e-be40-e556e18d0421","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":104,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"f45006a9-b1cf-4d9c-829d-8cd53a48877b","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":104,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"ab45106c-8a08-483b-bfab-cf58e4a1cdbd","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":104,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"4fd48b51-b1b3-4ff7-8484-5c7a7f4782fd","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":104,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"5c83b4d8-e76c-4f6a-b1b3-48cd1eda46f7","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":104,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"864c856b-ad30-43fd-b382-f09c53e1f0da","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":104,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"8fde712d-0484-4c4c-9fdd-3bd95363faa8","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":104,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"1cf1ba2d-e149-4f70-9ea3-4293d56181c5","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":104,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"ac2842da-48a8-4c1c-85b8-5c6376fdad19","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":104,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"a2fc6503-44f2-4bcc-a613-ec077f92b38d","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":104,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"a3a7a086-8d49-4e4a-86cc-60047587d0dc","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":104,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"10dcae12-6f67-4200-9aa3-e229158a23b0","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":104,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"dadcbd1c-9d65-4919-8d8d-d3a15811ff36","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":104,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"4a351bb4-6fef-417b-847f-640fb402d05b","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":104,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"93731d30-292b-4c4f-af62-ff386c4ffcc2","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":104,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"4af6a03d-2abf-49b4-8509-96f9119af22c","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":104,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"ff6a6d19-9edd-496c-bde0-4930997cc09d","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":104,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"a5d4e908-fe10-484a-8c2a-6f68b68033d0","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":104,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"53cc0685-ee85-4f45-86da-ccc1680bf944","block_type":"box","text":"II-73","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7431bb0e-e2b4-439d-a907-77e93103c8b4","block_type":"box","text":"NM1026U-5978945-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c8f3b4cd-07ee-4b3f-bbfb-2d424225b347","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":105,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"89dc61de-e830-4d92-aede-a55fe6c320c2","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":105,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"12037022-376c-4684-bf2a-f8ff74dcbc0e","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":105,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"d0fbb21d-4604-4ee6-af23-fd205b549e58","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":105,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"814ca777-1b0d-4755-aead-bd761f33ca5d","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":105,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"ddcdb140-d9ed-462b-8f83-41b244fbfd30","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":105,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"74fc806b-2bde-477f-9b3d-6c0f5f6e193d","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":105,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"ebd322c8-f8b7-4655-af50-1f904b0e26c1","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":105,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"6b385432-0933-4315-a8ac-5e7edff2db8c","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":105,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"c296a1cf-fec2-4925-8133-01e75904149d","block_type":"box","text":"the current expected compliance date.","page_number":105,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"70e83f3c-4b22-409d-8aac-0eb77ca90b37","block_type":"box","text":"Short Sales.","page_number":105,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"17ee5099-9510-4622-9c58-b46be1cf9f60","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":105,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"13386b5a-89d0-4bde-b8c6-7bb34816176c","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":105,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"226c32e0-6f15-40fc-8b0f-b0d464156c00","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":105,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"a8bfcd7d-384f-4608-bb00-74c21d9894d8","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":105,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"63b1a216-acc9-4cd9-8e3a-806883605faf","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":105,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"070bca5d-3986-4cb3-9e70-11fb68bf16f0","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":105,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"476427b0-222f-447a-b609-4d9c01fd21bd","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":105,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"14593532-c642-46f0-97b5-76e5f8f67202","block_type":"box","text":"securities to the lender of the securities.","page_number":105,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"962d7d01-78da-441c-bcb0-46f6d1fe32be","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":105,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"b1aecfdc-6cc5-4b40-9688-f47aacf1fdd4","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":105,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"e8cadfab-847b-440e-addb-ed29fe0c9a04","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":105,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"885595d0-904c-4f63-81c6-f79d5d09852c","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":105,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"bc452416-2205-41e4-bcaf-a376ab131247","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":105,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"cf150d87-7437-49de-b568-d092950fafc8","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":105,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"719f8c95-beda-4fbe-8d62-9bded226612a","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":105,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"43f23ee9-46df-44b6-94fe-5a93f402b500","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":105,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"522b976a-dd73-4ce8-bc5f-eb31331bd639","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":105,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"efeb258b-d7d4-4a07-80ac-079dbe10d2cd","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":105,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"acf1d6e5-c596-4ca8-87ff-081c82b0ed38","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":105,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"a45597f2-9bcb-4e99-a0e0-44b12be5757b","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":105,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"c64971d1-762c-4e93-a226-9830075975a5","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":105,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"22acca7c-b44f-464c-b30a-fba4265dbffd","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":105,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"9d75e254-2fc7-4aea-8401-4d6d96d3c46e","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":105,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"ace7ea98-e900-4b74-8e9e-2d527eaf4201","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":105,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"dd3c8a4f-4368-4700-bedb-c9721719d9bf","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":105,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"9371cdcb-47f1-4e44-881f-987f855fb3bc","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":105,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"e54ecdc9-d136-4504-91b6-10f770c70c96","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":105,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"51e9317e-49f1-43a9-a782-9e69e19d67ff","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":105,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"77cf935d-0394-424b-8edb-d9f66acbeab4","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":105,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"f9f567e6-2954-42e0-9498-20807bb317ed","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":105,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"3ca2db0f-c4c1-4180-a944-ccca7b0fb034","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":105,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"5f8e6e52-f862-4314-80b2-f3f0caa343c9","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":105,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"3997dfd5-276c-4aa3-b58e-5e3799ea9029","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":105,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"e761678d-606b-42b2-afab-53b7a4904505","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":105,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"dee0483c-202c-4e24-94f6-42750840f52e","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":105,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"08567c9f-219a-4a3e-afd5-9736f6731cb1","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":105,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"8ba82c72-b4b5-445d-9fac-da957c7a8cbb","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":105,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"453cfdac-b6ed-48d2-ad95-9a61ab89c484","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":105,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"99d7b095-95c4-4cda-af8f-b3ff830a1d2f","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":105,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"a7742488-4f96-4bc9-9806-74302a6afce6","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":105,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"f63085fb-d40a-4636-85a7-2fea317c00a2","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":105,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"393387a8-69e7-43ec-b771-18817fc2cda0","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":105,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"bc7c3015-3bfa-422f-95f3-016dfe37a96e","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":105,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"0390dc95-0729-4944-bbf4-d773124cf7ca","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":105,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"d61c1699-5462-461e-a259-030c084f3f4d","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":105,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"442b5bc1-8967-4674-9e04-7ccdea0429ec","block_type":"box","text":"II-74","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b47fe8c-d45b-4525-a76c-2f9fdabbf5ff","block_type":"box","text":"NM1026U-5978945-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dc3d6103-969a-460e-9e92-9eac262b7d59","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":106,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"264070f1-15c0-4fee-a41b-71fc4ec1846a","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":106,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"2929562b-dfa1-44d2-b782-851be4ba060a","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":106,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"f8412d19-4925-4f24-9ebd-4db9ade04db5","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":106,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"fcb62bc3-3dff-4854-a1b9-0f2e6e67b13d","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":106,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"cef1ffdf-cb55-4d7c-872b-78ccd2f0a925","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":106,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"9e5ab221-8bb9-4c9b-9308-fb4008366df2","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":106,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"1b702a5a-6f20-44f0-9936-98b0d8f92c92","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":106,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"38b51917-b58a-442f-ad3e-601647774f60","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":106,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"fbd8af05-1084-49e2-8e55-590c7a91f154","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":106,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"c53a25a1-e784-4f30-84e8-42eef928a839","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":106,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"01430036-4a05-4f34-8432-3d9347a7bb2d","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":106,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"18691ad6-3326-4d13-9690-3180ed4c8f5c","block_type":"box","text":"Standby Commitment Agreements.","page_number":106,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"c6ff2794-8ce1-4de5-b691-0133d4c987c4","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":106,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"8329f9ab-869a-41ad-80aa-4d0503f56103","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":106,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"5710d67c-bea0-42ec-b210-4e9270e4629c","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":106,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"eb2633a8-4a70-408d-8c54-03f0511d5523","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":106,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"b53134ef-7f8f-4c3f-bec5-b7cddbddad11","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":106,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"1653d588-4b68-455b-b319-4c89d65d2f7f","block_type":"box","text":"advantageous to the Fund.","page_number":106,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"26049f0a-b362-4b8e-95a9-08b87fdbe866","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":106,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"06599ee6-0b9b-47f4-9ea0-970bfd1e5659","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":106,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"00c1f612-0acf-4e58-bb98-ce1f8835bf95","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":106,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"fc8b65da-c6db-44aa-b830-1e5d46a972ef","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":106,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"a83f3a1e-be98-41cc-8010-3db2289b316a","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":106,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"f1f90566-24e7-43b8-b7bc-0b9b34f97ec6","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":106,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"3cf5bc80-54ab-40b7-a56d-aba631263a3b","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":106,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"af5c85ee-a0ef-45c3-9927-980094af305a","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":106,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"85996dd8-d247-4ffd-89d4-fa475a11cc4d","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":106,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"cd311ab6-8e82-4db9-bf2f-b15b18350f28","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":106,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"942cb2d0-01f9-44a6-b6a1-b779612892f6","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":106,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"1500a157-eddd-4aec-9ded-4defab5f161e","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":106,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"709661da-e632-4ade-b779-2a3570152975","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":106,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"3634db45-99a0-49a4-8e64-b747411beed5","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":106,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"18543b13-5ad5-4577-8b69-2212c1ec8d36","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":106,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"41a133cb-830a-4175-a065-ebb61e6b53e6","block_type":"box","text":"Stripped Securities.","page_number":106,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"a1c81e36-9ab8-406c-8014-1aae22957dd3","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":106,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"902032c9-6c89-425b-8308-1306caa63d72","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":106,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"cc50b00a-ccf7-40aa-8d34-05ae55244dbb","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":106,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"c399e1d7-a197-4ba2-b97b-3f6893e73417","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":106,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"cc5be25f-7bb5-4987-b534-978b604d5f8c","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":106,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"d238ac7e-7b8e-4f08-ae6b-998ad2458dd4","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":106,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"0dc54cb9-c5d2-47db-9bbf-3af05bfc25e3","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":106,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"b8621a55-482f-42db-81d0-1feb31bf7973","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":106,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"786ffdb2-22d8-463f-9a66-4c041014f7aa","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":106,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"d9411731-dc09-42d0-9b33-6498b1e67680","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":106,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"5f1aac6d-ed9d-4947-b63a-afe1628e6aa6","block_type":"box","text":"Structured Notes.","page_number":106,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"2673f3ee-8087-4e4f-9af8-828b46e7efee","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":106,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"b8363654-395d-4ca3-b934-26d1f6454d5c","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":106,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"1f9ba6ba-2300-48b8-8447-08aa690290a1","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":106,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"3270bbe6-d61a-4a2a-9021-1bae13aff8b9","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":106,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"798cbcdd-5227-441a-92b9-3c9ed0afa1f0","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":106,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"5f8d752d-9a07-4b6e-a952-f5292488cf79","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":106,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"837784be-da3f-42ad-a726-eae577e4edc6","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":106,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"bc4304e6-496f-4e4d-9569-62cb431efcd7","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":106,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"495e6ce7-078f-487d-90d2-f508463bf81f","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":106,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"614156c8-d99a-4caa-8886-45db296258eb","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":106,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"445d0ce8-56f5-459e-8292-59eec1792110","block_type":"box","text":"II-75","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2582995-9e03-4e99-b7ea-295ba6b51463","block_type":"box","text":"NM1026U-5978945-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"301e4c15-facb-478e-b9d0-b5596b4347ac","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":107,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"2d94be7b-42f4-4d56-85ab-93dd5d535eb3","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":107,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d0e05f1c-2952-4420-b4f0-887ef34b7d17","block_type":"box","text":"the risk of loss.","page_number":107,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"585538d0-14c7-4fea-9e75-b7f27c256c36","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":107,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"84efd3ac-d025-4ef9-ae5c-8d02245c7947","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":107,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"e717c6c8-ec38-4e08-9e35-3b2e9012190a","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":107,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"66c68376-8eaa-482a-bc8d-f9597ae2029c","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":107,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"6854a31e-c5d8-4071-9eaa-a56b6d68c217","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":107,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"baa42693-0532-4d65-a5fe-8f277ff42d39","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":107,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"bb0361c4-7712-4db0-8610-2e5244b08980","block_type":"box","text":"Taxability Risk.","page_number":107,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"efe34c97-9594-4bb0-8f31-cd488b0d9d74","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":107,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"a279df7f-0168-48bf-ba08-5ad9c65a9299","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":107,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"0606051e-a755-4062-8ecc-f10e1edd168d","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":107,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"f310f49b-8d5b-4109-ba99-19b2927dc016","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":107,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"6478d502-562e-4c3d-b9c2-fe9b0ff93e12","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":107,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"3eae4339-47f6-46df-920c-1030264a6f62","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":107,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"ef8e7e02-6f98-4004-86c4-2e0d4cebd1de","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":107,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"41a62f59-8de0-4b3d-8d46-a8fbffa40fdd","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":107,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"1fe2561a-2108-45b9-a14c-1b230eea8f33","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":107,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"f60eb3fb-89b7-4948-bc29-2cae5b2bf773","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":107,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"23d93b0e-28a4-4ced-ac08-df3972d3ed4e","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":107,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"32b835b4-c842-4425-bc4a-8e2b39d3479a","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":107,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"8f96bd0c-2345-4327-abf9-889e2b9310db","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":107,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"234d19c0-f500-47fa-881b-25528862a987","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":107,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"22d2df70-9eb3-4f4e-b98b-c97fb9d6fef3","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":107,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"3c7188dc-8609-408b-bd38-54ed3e081189","block_type":"box","text":"the value of an investment in the Fund.","page_number":107,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"32969718-6f55-42d9-a914-d95d23f296c2","block_type":"box","text":"Temporary Defensive Measures.","page_number":107,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"dd1dbefd-1837-47a7-bff4-56e0fd5504fa","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":107,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"eb4b986c-089a-4a39-bbd8-1638ce06e4fe","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":107,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"ad5c6982-ea37-44bf-9e73-1b878c19fffd","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":107,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"cbb33164-06a8-4ec6-bb20-1eb7beec462c","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":107,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"1bad94ae-0008-4119-b69e-40ca265cd65b","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":107,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"016568bf-2311-424d-ad3c-f1b5ae2f983a","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":107,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"7604e95e-07ab-4142-8740-26b164244899","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":107,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"ee6d9841-08a7-418c-ac17-cc49f257c1bb","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":107,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"c1ca54e4-9937-4f63-b256-bf4ef8ae50f4","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":107,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"250b68b5-fbec-4241-9d55-b148b088e88b","block_type":"box","text":"its investment objective.","page_number":107,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"e7ebe36b-ab6b-4960-b634-11d4ab1f6395","block_type":"box","text":"U.S. Government Obligations.","page_number":107,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"b23245c7-c5b7-4e0e-8e01-bbc7a451cf10","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":107,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"8670ea3e-7d4c-4b6b-bab9-c2cbb78aa8e9","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":107,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"a1a0a540-27fe-4f59-a336-a104da334112","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":107,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"036cc28f-403d-4756-9608-fa073139349b","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":107,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"bdb4a5ed-ca76-4253-a31b-dc3dbef404a8","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":107,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"63ccc20d-4f38-49a7-b333-b51c2cc4df76","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":107,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"1d68deea-0942-4df9-989b-e871499a277f","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":107,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"d948a4f2-efb6-4585-8cec-d81b85e0168d","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":107,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"f5a543f5-ef3d-4758-a519-aa11b7a46c9d","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":107,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"94eaa282-2932-4e19-ad69-7dd6e70a4c3f","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":107,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"87c36dab-2b47-489a-b8fa-33bb574defb3","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":107,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"0e563014-2d86-4282-8681-87cd5bce9ae8","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":107,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"50cfa143-ba98-4a9d-8098-c72333474c2c","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":107,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"73b2a959-8a09-4b79-9c00-46a4bead1b85","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":107,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"6b9a2ac6-da49-4859-8ca0-65a6bbfe4e94","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":107,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"cff08e93-9bb6-49cb-ac26-ad9bf5532c5d","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":107,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"d8d3e925-7cf8-4e90-9c5a-9e1b9aca3d39","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":107,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"a173da87-e8ee-4a83-a469-c596e1089de6","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":107,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"7bcd08a0-aacc-4f3c-ac41-f94df303ada9","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":107,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"ca090ad0-0f49-4ad9-abca-a967bbb87712","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":107,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"494107ef-1f56-4226-ba5f-86802ba50372","block_type":"box","text":"II-76","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36e8a682-84c0-4ec0-9237-93012976735f","block_type":"box","text":"NM1026U-5978945-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b439e440-7cac-4543-8141-76046010db7e","block_type":"box","text":"U.S. Treasury Obligations.","page_number":108,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"b2470f17-4bde-41cc-9770-721f02b5981b","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":108,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"6a26b90e-a2dd-4951-b2be-267d6c26994c","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":108,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"bc5659fc-8c76-4e1f-9ee2-17f6e28c7bfc","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":108,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"52c6081b-10d3-48f5-bdfa-c26ae2daec03","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":108,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"2a1ca1fa-35ad-4533-bc59-d6482d360143","block_type":"box","text":"do so.","page_number":108,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"2f4c6af7-04e3-47f9-a35b-c2d50869b89f","block_type":"box","text":"U.S. Treasury Rolls","page_number":108,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"5f0328c2-5173-4dde-9cac-9fc0c12f8e18","block_type":"box","text":".","page_number":108,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"dbd1ec0d-5f4d-4180-ac64-b1f41ee33d9d","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":108,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"531688d4-a37a-4229-8b9c-074d4ae7d2eb","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":108,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"68679174-3b68-4662-9f2b-9512f56566b5","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":108,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"d07a03bf-4cc1-470c-ba7c-2df586c6aaba","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":108,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"7ea63389-0532-4ea8-bf75-dfeb1b007a2f","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":108,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"5e83d9bb-3946-49bb-a33c-9096b6e22403","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":108,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"1d63f618-3101-4415-8c9b-973dd8e51b87","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":108,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"bdc0a46b-f6d5-4821-a24d-b73fe6f458c1","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":108,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"d30ac440-5ddd-4850-98e5-9506e93cfd52","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":108,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"dccf4847-1079-43e4-ba3e-0abd1e110560","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":108,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"68dbc9be-c497-4a48-bda2-8af480112da5","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":108,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"e204c1b4-6138-47d1-a790-d2cc1a5b6bb9","block_type":"box","text":"Utility Industries.","page_number":108,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"4ce529e0-2fe4-4a5e-8744-17d8aa58b9d2","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":108,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"873f89c8-c91f-4da3-a859-79e18fba0798","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":108,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"9d5a458c-14b5-47d1-9217-c00080f62c76","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":108,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"c331ba56-9a45-4a9c-ba07-c70b673d97fc","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":108,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"49aea33f-2017-4286-8a44-092265a73f7e","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":108,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"668bb6c6-d438-4b16-9cb8-7a194318ec29","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":108,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"b5990f24-543d-40af-bef9-429145ed4e41","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":108,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"c7fe6e37-7e2b-41d7-84a8-abc1699b8ef6","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":108,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"42b6f52d-a924-4552-9f5c-0e4f511e99b4","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":108,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"e39eab13-326b-4233-8f4d-526ce5ba9d37","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":108,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"969c77d4-4968-4a15-abca-378203161685","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":108,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"61e6f83d-6aa8-478a-9434-7160c55940a7","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":108,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"5982e131-a39a-4de8-8c80-9b9af7d29ad1","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":108,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"3839f6bc-1637-445b-9aa2-c18118f873f5","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":108,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"ef343001-794e-472c-88b7-fdb51ce9acf6","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":108,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"64632269-b4d1-4087-b4eb-c478fcd315e3","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":108,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"9c8b3883-8eec-4fdf-aada-60ef30151dda","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":108,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"16705556-132b-4b01-9548-436115af57dd","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":108,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"2f084fdd-658a-4f1e-883b-b5ef36c548c2","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":108,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"7759e430-cf8b-4654-bf78-a28739e6bc71","block_type":"box","text":"utility.","page_number":108,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"ac1e56d7-ff66-4719-bc22-807053ee88fc","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":108,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"7b8822a0-222f-4eb8-a7ce-6032f2d79bcd","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":108,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"5d5216f7-a828-49e3-9055-6aef23b0bc38","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":108,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"b09c737e-e36a-42fd-b9cf-a557e826251d","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":108,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"908cb60e-8d0d-4b46-8d77-5c38d9986620","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":108,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"212b0e02-9a90-4dfa-833f-b5973deb9c0a","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":108,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"3b787010-fedb-4058-b2e3-b6a23749fbd4","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":108,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"c0bb82a0-93ae-490b-8db3-b72affc15013","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":108,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"6a516080-a72b-486b-81a0-65e607cd8335","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":108,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"565c618e-4abd-4a97-92a7-bda648e500e6","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":108,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"ddf0ec09-ed9f-49aa-bb60-c46301cdf7de","block_type":"box","text":"continue in the future.","page_number":108,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"e16d7eee-4fc0-4e16-af40-3cd158b19b3e","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":108,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"646f9f5c-a980-42c0-bfa1-f2cad4bc609d","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":108,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"80d03cd7-b72f-48a6-883e-171d00cc5152","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":108,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"910cab2c-b342-4755-8751-fe796c57de91","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":108,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"9318c2cd-5d6a-4a92-bb5a-20a96a7d40ab","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":108,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"0383f147-da0c-4425-883e-1b7cf3906c09","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":108,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"d6f08ec7-daff-4998-ab46-2c0a0274a9bd","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":108,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"d8f30be5-6b50-4302-bbed-f3535181b7ab","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":108,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"75d7de6f-ae5a-42dd-a779-d61ebd6d56ed","block_type":"box","text":"II-77","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8588b474-1ae5-4a5b-b591-47908b87315c","block_type":"box","text":"NM1026U-5978945-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d9188036-4d7f-47c3-a152-2f918267ee43","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":109,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"613cba9a-dcad-4fb8-aa46-1b1e46edc596","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":109,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"21af6a48-c088-4453-87c5-d59178668f8f","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":109,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"19c83240-da32-4181-a064-3943a24b20d0","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":109,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"1ac38c6e-9165-4b07-86ab-e00913b67232","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":109,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"49a6c641-d4e8-465e-8306-93111d1ba652","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":109,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"2d183378-d62f-4d64-bb81-530779feb939","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":109,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"f091893c-0bf6-4cc6-9ea5-4bbaa40445b1","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":109,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"f6a92c3a-288c-42f3-a41f-f2ff21c07d37","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":109,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"d29470c8-9428-48a7-a1c0-c160d3942690","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":109,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"4473bb50-e88e-4f74-84cf-0a86505dd939","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":109,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"4fa2d15d-2139-4c24-b11f-8a3a62d6690c","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":109,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"e6c63943-3d24-41d5-bd2e-bbf2c73de721","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":109,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"2099a440-ce54-4f28-80d8-d873843fefc1","block_type":"box","text":"ways different from regulation in the United States.","page_number":109,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"2c21b04b-bac7-4f0c-9d19-f56577a51238","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":109,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"027cc28a-d13d-4509-b0ff-8da6db41b5fd","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":109,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"de68baa2-43b7-4236-98c5-512eaa36dce7","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":109,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"ffbd0259-7088-430e-82ba-2e8cce22425a","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":109,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"6a012ea4-7046-4e95-b0db-e0d146f6d649","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":109,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"f881be70-77f3-4c65-96bd-6384d21dc8f0","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"515f8012-ac86-4d12-b1b0-8575e845a5ba","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":109,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"d7af7bd9-c1f5-4d41-8b70-ab75be6484e0","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":109,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"77664476-f9eb-480c-b9c9-bf743fb28108","block_type":"box","text":"increase.","page_number":109,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"c88f1db9-c1ec-4d01-a15a-502aef4ef713","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":109,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"ade0db8c-e845-424b-889c-f3de86f3f486","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":109,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"909a06b7-45d4-44b6-b7c5-11c07585d450","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":109,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"58e6b00a-24dc-46a3-bb82-5a0aab4ed0b3","block_type":"box","text":"Electric.","page_number":109,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"db10ddb5-644d-44ef-b1ad-add0631c587e","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":109,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"b012aebd-cf3a-4959-8532-77868f470cd9","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":109,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"d96132e7-07cb-4767-a104-22262b45bda3","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":109,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"a8da0fbf-18d2-48ae-af4d-33df63649b8b","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":109,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"98e2e754-cd96-4299-8bb2-9d132cda7e5a","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":109,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"ee792683-97d8-4962-81ab-5a93368b2857","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":109,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"533da1b8-b979-4814-b00c-5ef142f7a442","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":109,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"a7add36b-6844-4375-b593-746406daf011","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":109,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"cd7f622e-b103-444a-938f-613d9967c7c4","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":109,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"23b76cf7-04b9-4568-ad52-7fa977681c07","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":109,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"30797328-1a63-4425-8665-578d9f18363c","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":109,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"9c4a9a0a-e535-4d78-be4b-fe6a12d8d2b0","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":109,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"fb453254-2161-48e1-b054-4d022942f012","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":109,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"c6fa59ae-51da-4c40-857d-f7f3d5b3cf6b","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":109,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"8c3fe67b-824a-4124-bce8-07d65d07a6dc","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":109,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"38e049f5-2ba1-4c81-82ea-ca59287b4194","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":109,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"36a64e25-0a49-40a0-a1a3-2fb9be2fe556","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":109,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"37fd0633-9a18-4a03-bd56-062f733f57ae","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":109,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"3c85a9bc-32ca-4dc2-bd1c-a36ca022ee5e","block_type":"box","text":"and for decommissioning such plants.","page_number":109,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"6bf39cd6-4303-4f7e-869b-2e2583278821","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":109,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"9d534009-5820-48ce-aaf0-fde55da5f64d","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":109,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"6e64c9d4-3060-452e-a2f9-0b272fd96637","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":109,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"8da2af4d-3953-4323-9a97-ba25bba5017d","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":109,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"45c0579c-9f62-4644-86d4-433d75d482f2","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":109,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"01d49495-55f6-4f4d-b3f8-a3407309b81a","block_type":"box","text":"greater predictability of cash flow.","page_number":109,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"8a556164-816a-4200-a64e-c2c4bb21b86a","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":109,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"33f548fe-0cc9-4ffc-8494-e3513aa0afe2","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":109,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"8b2dd526-741e-4f01-a232-ee98b865a381","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":109,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"24a4915c-188c-4bd2-88b1-7c665ace907c","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":109,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"670fd599-a093-438e-a761-24c7e462d90b","block_type":"box","text":"II-78","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d8cb9f4-e2f0-4069-89d1-4c67c721949a","block_type":"box","text":"NM1026U-5978945-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f04a91e3-6244-42c8-a61b-8d80787562b0","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":110,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"0808d69d-bb02-47c0-8e39-536f3588e0e1","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":110,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"844c3aa6-636b-4ec7-9eb8-f379d224b9e0","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":110,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"6beb001e-6c25-4cfb-a6ef-67e68b03bbf3","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":110,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"eb28a9e9-63b8-4cce-bfc1-68615286c15a","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":110,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"250e8bc1-a4aa-413e-b8dd-dcc3e989e018","block_type":"box","text":"Telecommunications.","page_number":110,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"6e778b9b-e049-4ebf-b789-86b4a2116f60","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":110,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"3093879a-af71-4860-8b0f-14400a575346","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":110,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"03a67ec6-37f8-49b6-80d8-a27b845edd2c","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":110,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"69b650d3-17fb-4fc6-b1ed-194dbe909b54","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":110,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"3972faa5-e83a-453b-aff9-2f7d5219bc92","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":110,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"311bd970-7685-4c83-b9ff-f01b7cc82645","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":110,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"922a3f61-e3e2-4371-af03-870d6aaa5ce8","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":110,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"7bc072a6-b639-4bd1-92ef-9d7f800fdee3","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":110,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"a507d444-664f-4003-9df3-289eb909fc58","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":110,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"db820bea-4822-4e96-822b-b2ea193d8e58","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":110,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"dafab15e-8d0a-4c5a-a825-346e870a2cb0","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":110,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"41921e52-b2e2-45ef-8a58-a5c42685c8f2","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":110,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"b8bf89c2-a2bf-493b-a3f7-43532c07196d","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":110,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"d07c91c3-6ef5-4828-8dfa-24c89f062cea","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":110,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"9ac6f768-2567-4ac7-b49c-a82d789837c9","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":110,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"60d506dd-44cb-4360-bb95-bbe5847bfead","block_type":"box","text":"residential, corporate and governmental customers.","page_number":110,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"87fd22b9-d9e9-4483-aef1-97d1e5e27c86","block_type":"box","text":"Gas.","page_number":110,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"4c529bcb-b0b4-4a7d-87a9-3076ec0811f9","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":110,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"9849536f-3ee5-4815-9b97-50bbb5c9ee24","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":110,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"f47dc5e5-106e-43f1-82ca-99e393567e3f","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":110,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"5e114014-dc6d-4be9-a65b-590dd3aa142c","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":110,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"532d08b3-55b8-4b55-a10c-f65ef309a256","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":110,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"bff63442-8108-4d55-bd64-f4aaee59d6f7","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":110,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"a573b95f-eae5-464d-bc44-b3c25a4cbd76","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":110,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"fd5e07d2-eb78-47f4-a53b-c33ec572d3db","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":110,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"6ed67eb2-0d44-4fbf-a9f1-8322d8f7decf","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":110,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"4d2e799f-2830-449c-ade5-5346bcabef25","block_type":"box","text":"Water.","page_number":110,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"656ec975-a304-4e59-92fa-9f5370b2ea55","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":110,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"b06214da-c3e2-4579-81de-9d6b282265e2","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":110,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"0a55be81-2a5f-48de-8139-82924ebef4a4","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":110,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"04d05544-3d42-45da-9fc5-d35dd8619b4e","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"e58565fe-630d-4285-90aa-16dd17cc8044","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":110,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"0ac0920e-b624-4b46-bd80-199c01d43a48","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":110,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"7eb10168-a147-4a1c-a86e-b16a1d55eb39","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":110,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"f606cfdb-dde7-42bc-b3c7-d475dc11a1c3","block_type":"box","text":"Utility Industries Generally.","page_number":110,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"c2d41b9b-4c9f-4d37-8ae2-127dd2c545ce","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":110,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"986159b4-e1b4-44c2-ad11-972d5499fe03","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":110,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"644f1682-370c-40a7-a7b1-b6e4a8a35630","block_type":"box","text":"not develop in the future.","page_number":110,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"b0d0fb40-70ea-47ba-b993-502ec2302e1d","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":110,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"e83eb350-9133-4504-b722-2c010ba6be22","block_type":"box","text":"A Fund may purchase or sell","page_number":110,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"a126afc7-d644-40fa-8777-66597f69565a","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":110,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"97e8e28f-c69c-4df1-9b2b-c5d018a93afc","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":110,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"57f7e1eb-6f18-4fe5-9bad-ed2ec812372d","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":110,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"89c785bb-f475-402a-b480-30a2acbb1eac","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":110,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"aa96a351-415e-4051-af86-1f6fb5912b61","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":110,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"69c7d6a3-cc4e-40c5-9c38-12268efc8452","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":110,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"fc52eff3-e08e-409e-a1c1-b18a877ac507","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":110,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"1245f2af-ed6f-4db2-b800-881d123e22d0","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":110,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"25685fca-01c4-4582-8b45-201afd3197cf","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":110,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"42c20500-d049-4513-bb86-2e70ae61072f","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":110,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"0a1132f7-7364-4c80-b4a6-85335df5aad8","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":110,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"3a87abec-e33b-4cbc-b834-6675c417f8f3","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":110,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"20fbc393-df43-495b-86f7-9205910beab7","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":110,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"11fc3ca7-8865-47e5-8623-d21e621725fb","block_type":"box","text":"II-79","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d91fc894-ed77-431a-804c-b776e68e68d5","block_type":"box","text":"NM1026U-5978945-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"da135ca9-b3ff-49ea-9f3d-5a23c5324fe9","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":111,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"60296270-2a44-455e-8d87-8c3d76963c67","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":111,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"be18989c-c356-46b3-9322-a1abfde5218c","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":111,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"ed3fe175-d3c1-47d3-9a8d-81d278420fe1","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":111,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"a3f59c26-c27d-4649-85e3-8a7183e73427","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":111,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"c566d5c1-3c1e-4852-a21f-90494d6bbeb3","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":111,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"e57525c4-742f-4b9a-8e1a-3d67be4fbb76","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":111,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"71f03879-46fb-41f1-a9fc-aa40eea1041b","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":111,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"461b1339-4a77-4f0a-8cfa-e3ce65106356","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":111,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"ee3cd8fd-df3f-431d-97e5-70da16c79d37","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":111,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"be9896eb-8924-4893-b7d3-ededb4e9b51a","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":111,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"447b33c3-1219-4ee3-a711-7e09c4875970","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":111,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"a04521f0-6c92-487b-888e-b549deff21dd","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":111,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"404e7974-0cb5-4282-a182-6af33a4bb2eb","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":111,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"b02b95a9-982e-45a3-9bb6-9d485eb3423f","block_type":"box","text":"securities (","page_number":111,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"0cc9155d-bc8e-4ac7-afbe-84ea94be7840","block_type":"box","text":"e.g.","page_number":111,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"3dbfec37-f156-4068-beed-9ddedddced45","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":111,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"03b69d20-19ce-4546-92e4-964705378e6c","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":111,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"86d930e7-179d-47aa-915c-ab30bf358399","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":111,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"22353a09-998a-4706-a99b-e4ada526082b","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":111,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"4fe0c05b-1948-4350-be89-3dff400c28c4","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":111,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"6d442eb5-4357-41c7-90c2-6163e40798e0","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":111,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"679da857-735e-4c5b-8d19-5827256e3ad6","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"a3db2270-c54c-4c42-bbd2-b31d6ab63a3d","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":111,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"9407abda-da25-4604-afc5-b09b347be84f","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":111,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"f0d2f131-e95a-41fa-88c6-a4d9eb6776c7","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":111,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"e6ffcdc6-1dff-46e2-b520-55ee4307af23","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":111,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"f48a5183-521c-41b6-b4e8-e79eb6ddc5c5","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":111,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"8daf385f-45e8-4dd6-bc2a-681be7cff95b","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":111,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"d541172b-5228-44a3-8f9d-21047c6428c0","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":111,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"99104ae9-2e76-4f9e-b886-d79c09bbef1b","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":111,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"71e2724d-75e2-4356-b32b-d1c7651a51c3","block_type":"box","text":"Yields and Ratings.","page_number":111,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"583c76e5-7689-44d2-9469-ed7c5da68d65","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":111,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"fcfdd47f-be7b-4174-b954-9f8d50793990","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":111,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"37163d44-18a2-4f0d-aa94-1d9a58e5bcf8","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":111,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"ad3f6cef-77ac-4025-89d4-8ef454a75227","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":111,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"e02ddcb3-cdf1-4225-be89-46f49e5c3b57","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":111,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"e4ca07fd-85f8-4505-9fb1-410d21c9d0b6","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":111,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"3eefde54-9acd-4726-8708-d8e28d3eefbb","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":111,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"70ef803f-4f2e-4afb-bf7b-613f465d68b2","block_type":"box","text":"continue to hold the security.","page_number":111,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"38f586f0-5dc3-4b18-873d-7a181e3008f3","block_type":"box","text":"Zero Coupon Securities.","page_number":111,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"c0e5a2b8-c5ca-41ce-a08a-7f777a35989e","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":111,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"8263e09f-77f6-414b-bbc1-b452ff4f2581","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":111,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"648b46cb-490e-41e5-83fa-972f58aa7ac5","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":111,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"31dfa8c1-0cfa-441b-8f2a-a44a33ba8746","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":111,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"924d2d39-b150-4cc7-a7bf-39e38de8a26a","block_type":"box","text":"security.","page_number":111,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"7b22e88c-9b02-49e7-94eb-95e7e61e7ff0","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":111,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"03e0e863-8e7a-45c7-9744-b8b58bc0dc6c","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":111,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"56ea06f3-0d56-4c3f-84ed-81bb4c0a2553","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":111,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"5f8d157c-eeb8-4451-8758-a0406e3845da","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":111,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"6ff9eeea-3261-4c23-be8a-1e0552f19a9b","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":111,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"157ca443-5e72-49df-a7ef-5a7efa0b412c","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":111,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"d4212bc4-0594-4a69-a971-b4c0d5007b59","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":111,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"d85b4cd5-7d66-4e62-a3cb-d2d993ea91c1","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":111,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"4020ad57-28f2-45c6-9409-e5c3f3979c36","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":111,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"1f0e5b5e-8aac-498f-bdc5-247f2e499950","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":111,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"ebaa4a27-7161-461d-ae74-8c2bfacd8219","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":111,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"9075f127-de4c-4c83-a57c-699fbf339fbd","block_type":"box","text":"II-80","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7719132c-ebf8-4e18-be9c-cf9742bdc933","block_type":"box","text":"NM1026U-5978945-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1f2937f4-2df8-4b5c-aef3-e9a6eafcf221","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":112,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"e83bb302-889a-474c-be37-c5bf2dc9a54a","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":112,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"0b4b3703-542d-488b-a88c-f4668045032a","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":112,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"83d93d53-2b64-466d-95b6-fd76636497d6","block_type":"box","text":"intervals.","page_number":112,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"322122dd-4d6a-4ac1-ad6c-0c5ffdeab6c1","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":112,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"c392999d-ea73-4ad4-a7a9-f51a27725ab5","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":112,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"fc3c88f2-eec9-4749-82ad-315b324f6f0f","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":112,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"f11a437b-251d-4c14-81b8-ca6c43e9adf5","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":112,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"646ff698-978d-4989-a351-46c09950a0cd","block_type":"box","text":"exposure to zero coupon securities.","page_number":112,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"c89bfdd3-e114-4bd5-be4b-cf1b14fdb2d7","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":112,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"018aec33-fe2d-4648-a00e-2e00ab5ef99a","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":112,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"b7e79061-d865-4af5-8f02-7a6326f662b5","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":112,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"f245c325-3c51-4645-9d9e-f7de496af139","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":112,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"f2921207-99a0-4537-b9d1-aa85195b1218","block_type":"box","text":"Suitability. (All Funds)","page_number":112,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"977eef6b-9101-4e15-a727-da236a8b2d2b","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":112,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"38c6f600-87f2-477e-91c4-7f23572e155e","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":112,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"1a2aff67-87f2-4e50-8fc1-9e21896b6b26","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":112,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"aeb60224-8d99-46db-bc45-cd878120e9e7","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":112,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"60911e90-d436-420f-94bd-8a2cdda2e670","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":112,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"431a04e3-0f96-49a8-a88e-b5843988e12c","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":112,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"305f7cf4-33d0-403d-9d35-7fb9d2066949","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":112,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"cadecc13-c224-4d14-a09a-775db68be076","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":112,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"126cddee-113e-40df-b532-cb9867f10a4c","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":112,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"5cc5c785-f8d3-4b6c-9c5f-888c1fcf2758","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":112,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"fcf96fdb-83d9-4267-9393-41be23c9f323","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":112,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"083aeea4-55df-4f74-9c72-a5a4d1867367","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":112,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"fd364e20-c949-494a-8d67-b628b7463d38","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":112,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"6a2408d9-b2d0-40cd-928a-9f39fa13eca9","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":112,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"5c87ac98-6ef9-4108-886d-bf3681cc602b","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":112,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"6807bbff-2540-4984-8abd-f29ac1ca1cd4","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":112,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"ea613423-360a-4b88-afba-c5708be6db51","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":112,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"4a275a6e-4575-4fcc-8f1d-3344939a46e3","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":112,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"fcf888f7-23de-4e7a-b62b-6c2a369acea2","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":112,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"880929ce-b97e-42e8-8964-19a13252005a","block_type":"box","text":"(","page_number":112,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"45230653-3fb0-4cf6-bc5c-a187479018ba","block_type":"box","text":"i.e.","page_number":112,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"d44dd8f5-c224-451c-9533-fb506d9beca7","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":112,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"79bf8ade-91b4-4390-ab59-3500709d1e6d","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":112,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"5634f2a5-f96e-49a8-acc2-2a23e360f30e","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":112,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"781db274-cfd2-43e1-b4e8-aebdb6b6d7f8","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":112,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"1aed26f2-94f7-4f60-a56c-6f621476dcf5","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":112,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"55a0ac93-3fa9-480a-819b-a60e6027841e","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":112,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"8d447737-d050-431d-be78-6468180a301d","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":112,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"e64f6ce5-62fb-4e09-921a-349defc544cb","block_type":"box","text":"regarded as the sole issuer.","page_number":112,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"605ac12e-492e-4820-9296-5ebb53166887","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":112,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"d75385d3-f4a6-4225-b6d9-afd46dcab595","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":112,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"de37cb21-7961-43dc-9fa7-4f1a1e95e6f8","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":112,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"eaea8c63-e95a-404a-a54f-fa67fce7b352","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":114,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"c91de8ef-3671-4493-8f1d-6b6cf3b8a33a","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":114,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"e5e3f50c-b90a-44bf-8dd1-6c0ca63a3f11","block_type":"box","text":"Custodian Services.","page_number":114,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"95ddfebd-69da-4e6f-b6e6-0ed1a7c8f542","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":114,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"16669cd8-41ed-4682-9d56-8e286e56ea89","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":114,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"5ae99745-ab1a-4203-b56a-beb2a7fd3445","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":114,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"bc7905b9-2ed2-4d94-8b04-5c7aceb6696b","block_type":"box","text":"banks and securities depositories. 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Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":114,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"2e49cc68-f6b4-437d-8ead-4a9fbcd96cce","block_type":"box","text":"Fund.","page_number":114,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"5abecf8b-8cfd-4b22-acab-89f9061f7f1d","block_type":"box","text":"II-83","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23ef3597-120d-4259-8876-d578c15f7198","block_type":"box","text":"NM1026U-5978945-114/232","page_number":114,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"58d54145-f409-45f7-928e-77d2141d6546","block_type":"box","text":"Accounting Services.","page_number":115,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"f46e0e01-f275-4160-bac8-4b312917f20e","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":115,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"5800596d-e172-4ed7-8ef5-1911a9735960","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. 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The Distribution","page_number":115,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"ba42f119-7696-4d7b-a26f-cc2858c0ac04","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":115,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"57eea458-776f-420a-86c2-636cee21fd75","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":115,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"a36a3ab8-5aef-400d-b040-07428cf0bf65","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":115,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"42340df6-6827-4a35-8ac8-c460c4a0ca4c","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":115,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"3d6799af-eb94-4a1c-9dfd-b4d922a8b8b3","block_type":"box","text":"literature and advertising costs. 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Employees subject to the Code of Ethics may invest in securities for their personal","page_number":115,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"1bb4d6a8-3d20-4838-bf63-1308db71b7dd","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":115,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"f28055be-8023-4196-9273-7439d145f22b","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":115,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"04d22a3c-723a-4eae-a9f7-cd254854d14f","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":115,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"e2aa254a-8622-45c3-a9e4-e0f5720a103f","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":115,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"3ba4ac46-23be-4efe-aa4c-b322262e500f","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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(collectively referred to in this section as “BlackRock”) and their respective directors,","page_number":120,"box":{"x":69,"y":286,"width":829,"height":12}},{"id":"b46908b8-2629-48ff-b91a-ff59cc37683c","block_type":"box","text":"officers or employees, with respect to the Funds and/or other accounts managed by BlackRock, may give rise to","page_number":120,"box":{"x":69,"y":302,"width":802,"height":11}},{"id":"97108401-0723-4cd2-80f2-8b983ea5d55e","block_type":"box","text":"actual or perceived conflicts of interest such as those described below.","page_number":120,"box":{"x":69,"y":317,"width":507,"height":11}},{"id":"2001838f-a68e-4e00-bb62-b6fa1cede67b","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. 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BlackRock may pursue rights, provide","page_number":121,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"b24a6d1d-71d8-4c2c-9882-d572f997c5c7","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":121,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"30da158c-dfee-4e3c-ad42-58ee37d04acd","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":121,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"23c0fb7f-a86b-4523-8afa-7030c1e50c80","block_type":"box","text":"action) may have a material adverse effect on the Fund. 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BlackRock may (but is not required to) effect purchases and sales between","page_number":121,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"85892e92-8348-4531-a205-45629bb2c377","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":121,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"b1ddfb2c-8c75-49be-b69b-249465982bf2","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. 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BlackRock may have a potentially conflicting division of","page_number":121,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"6e5d64fc-3342-4179-81ec-4858e0214f68","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":121,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"aad23cfa-25de-4efb-9d2f-1977fa7ef0bd","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":121,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"c4c25364-a4f8-45f5-807b-42e51eda90f6","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":121,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"99717c89-cc75-4b30-9d3d-924fa5a8a12c","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":121,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"1b23485c-b3f0-4c20-97d8-79277d2fc8e6","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":121,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"f306e767-ae0a-4be6-8a75-e30002f79c37","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":121,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"58d37af5-8e08-45d0-965b-5459fd0f015a","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":121,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"bf1c6e6d-f3af-4fd2-9966-85a653e719a8","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":121,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"3fed0e40-fae3-49ac-aa43-47456389c399","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":121,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"3a0d8096-7646-40c7-9f01-51eadb5cc8d3","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":121,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"50897201-5909-4c3b-92c9-7647377a8174","block_type":"box","text":"II-90","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff67741b-a02a-4e3d-8c61-eb76ad2a39e0","block_type":"box","text":"NM1026U-5978945-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5bd591f5-e63f-4460-8f6c-37472bf91aa8","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":122,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"54fcd641-9622-40e7-980f-e41d220dbe22","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":122,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"7bfc570e-45ee-40e4-b045-84ae46930c08","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":122,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"c7f8b4bc-2d75-4b13-afa1-182481e4ba2a","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":122,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"7f0041e4-7916-479f-8e88-40a9823f9daa","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":122,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"eeaa0af0-a7b7-4856-af32-79d299cf841e","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":122,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"d17ce74e-b1cd-4f1e-adb5-3611649095a2","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":122,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"b12995cb-1ffd-4c0f-bfbf-96d04e401b05","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":122,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"fac7b789-c8b8-42e6-a017-464194183e47","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":122,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"63a58cd2-b7cc-4522-bda4-5f6d2ce97192","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":122,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"b3e6ceb1-898e-444e-9ffd-4fc638562c2d","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":122,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"f9007dbe-a12a-4666-9e23-bc82b07db1cd","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":122,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"e3c325d4-edfc-403b-b1f6-c148ced1e911","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":122,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"5aa71e58-5ca0-45d1-bced-57de4c62704c","block_type":"box","text":"managing a Fund.","page_number":122,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"0ad27bc1-418a-4b3d-925f-0302b70b5495","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":122,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"324068dc-eaa1-484a-929b-4cd92d772c9e","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":122,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"f7e7c42e-3b10-4772-828e-b08a62cca1ba","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":122,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"c5c98196-c0ec-456f-8d80-ba021a2f76f0","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":122,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"028be6ab-4f9a-4746-ac07-93d66e0c2691","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":122,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"e1a06229-c552-4cb2-a094-3928234c2531","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":122,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"226a8f74-cbd7-40a4-9eca-282a856d31d4","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":122,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"7803ad16-1437-41bd-a607-f442bba0c467","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":122,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"60135dd8-6c89-45e8-bf5d-9dee05f27865","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":122,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"bdadd901-2d1c-438c-9b69-979d31e70f20","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":122,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"cf2a568a-31f7-4dc4-895a-6f8b57dfc87e","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":122,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"ccdf7c48-ef38-4d18-957d-775755e2fc22","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":122,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"83df5b4a-7d2d-4c9c-b1cd-ff3249a9c77e","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":122,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"54f66fbd-a15d-400f-9246-78d019006536","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":122,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"6f75c8b4-6211-411b-b468-64d77db1a8df","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":122,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"3bcdf548-bfa0-47ca-8144-c2360658fbc9","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":122,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"e48aea46-0b55-4cb4-8f35-4967a5aebd6c","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":122,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"55a94782-3847-408b-849f-e3981c723736","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":122,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"cb257553-68ca-4dec-8db9-f90411548b0d","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":122,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"192076c2-ae76-491a-9e48-03a4fae0e15a","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":122,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"2b7aac5b-83fe-46f0-a502-f03c1aea24fe","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":122,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"18162291-0b42-4d12-95e1-63f32c67be1c","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":122,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"3dcaa53f-8fca-44ff-9e45-27ffdfc9c800","block_type":"box","text":"under management for BlackRock.","page_number":122,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"457455ba-2f9d-486a-9903-35e2f24666b6","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":122,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"3e3e1674-3a0c-4bda-b2fe-3e6e0bb413db","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":122,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"3d5cd4a5-6d62-4529-9ab3-2aec24b86dbe","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":122,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"702dae47-1879-49a4-9fa9-df19de573f08","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":122,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"1c62e6fc-c77b-48dd-939f-e0cdcd8ce73d","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":122,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"5176e246-6860-4d8d-8e1e-49261ef1279c","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":122,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"2569780e-7fad-43ff-a7bd-ef6430bca0dc","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":122,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"4c8a7467-0224-45b3-b3d6-341942803b06","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":122,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"27e024b4-86b2-490d-a2df-43df66078de6","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":122,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"e5c7e51a-7f1f-40d4-b5ec-1f72fc121017","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":122,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"cd71c990-4db5-4cca-abc7-5e49e932b911","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":122,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"b4ce6693-e3a0-40d4-9576-f2dc7f47ea41","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":122,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"0a4d7241-727c-4f42-b1ea-92f14f030bac","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":122,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"8e1f85fd-3ced-452c-9813-c1b65cb437ae","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":122,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"fab014fb-8edd-4c72-b464-f92f5b5748e9","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":122,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"035eac1f-e0da-4db5-ac25-d154cc0bfc75","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":122,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"e06b1cd3-a827-44aa-a4e2-3e50d27aaabf","block_type":"box","text":"II-91","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98db8e85-4fd4-4704-9794-c1e87be6e451","block_type":"box","text":"NM1026U-5978945-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4b450a5a-00a6-4a90-bb38-2851967a68e2","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":123,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"1f72d7a2-f1ed-40c6-9056-dfc95aa87666","block_type":"box","text":"any such fees or other amounts.","page_number":123,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"0f7f2caf-c1f0-4087-8423-fbc7eee29804","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":123,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"a63e8be8-eb86-46f7-9d23-9d1dde9e57a3","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":123,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"db2840cf-78b0-4e76-9129-2e0434f7e3fb","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":123,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"2ae5e3b3-6666-4cbb-b282-dea74e14ff93","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":123,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"1d950860-3eba-487f-a006-d695996a37c6","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":123,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"e420a003-ab30-4076-94e0-fd40aa53ad3c","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":123,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"e896f9f5-f923-4b50-893c-8a9fb5aad402","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":123,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"6d4cdf26-a84c-4619-8825-f5b8e91d5af5","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":123,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"f1059716-f3c3-4adb-a136-2cc51e06122f","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":123,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"3b1d717b-f0a3-408a-a8a4-9e8154bd377c","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":123,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"5dbf6bb6-202d-47b1-b95d-fbbf1aa85d51","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":123,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"1e3d70db-2694-455c-b212-69188a5db9f5","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":123,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"7b61baad-518c-4e08-9981-df762c1ebfa0","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":123,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"2c367989-017d-41c6-b18c-3348d5f1644e","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":123,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"8fc868e4-642e-4a43-a6f9-44c340186848","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":123,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"6f621e06-50bc-43c3-8c7f-8b552e95d8c4","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":123,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"65bf6f87-bb25-432a-a76c-5a61fa97171c","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":123,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"781cac07-2019-49ef-aae9-b039dbdbaa71","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":123,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"9c94a253-7dee-436c-b816-e2c435c960e8","block_type":"box","text":"potential dollar exposure of collateral shortfall resulting from a borrower default (“shortfall risk”) in the securities","page_number":123,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"46dc20fe-e02a-4d11-92bc-c0a1a17c80a1","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":123,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"19ed498e-c177-4552-86cf-c5b4417a80db","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":123,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"6ffec896-3563-4610-8ef4-1f8c2d362a78","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":123,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"1a297bdb-d5a5-48a5-b499-908e642816de","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":123,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"1bc7ef46-7694-41cb-8bd5-d518d36f2068","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":123,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"f9b2375d-bde1-4d65-854b-9bb92d37e6e3","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":123,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"a558e8b9-f9c9-4ec0-8be6-2775dd6723ca","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":123,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"54546911-9eb3-4e0c-91e1-db47cff65129","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":123,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"4f7ef72a-23a4-4f44-b67d-1eb60d333c60","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":123,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"1bf9a6b2-d7a2-4d7d-8557-78be5a9de7c9","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":123,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"e2959ae4-4597-454f-b296-e668484d2f35","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":123,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"0a754b38-b505-482b-965d-661669cc4a86","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":123,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"459b78b9-df6d-4570-8465-6ad27ca63437","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":123,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"59bc6764-12a4-4804-8056-475bee226db0","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":123,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"d12c7f1e-aa0b-4035-ab46-50657d40d49c","block_type":"box","text":"regulation.","page_number":123,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"5f6fec4f-33ea-471d-8386-c497e5422fbf","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":123,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"8cd2d4cb-ed6e-4cf3-b07b-19183a44d695","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":123,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"42c577f4-f4d0-4d8b-ab54-f35c3ce228ba","block_type":"box","text":"various program limits (","page_number":123,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"f7e380b5-a430-4d06-abbe-b5ea1a310b0c","block_type":"box","text":"i.e.","page_number":123,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"a639ba1b-f055-4a87-8e71-17ea4f21d284","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":123,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"47605bfa-93ec-437e-9e57-2c11476da040","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":123,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"b33833c4-649f-41cf-be9a-ada132b44716","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":123,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"9b1686e8-b63f-467f-a1a1-a5a3f2c34045","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":123,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"cf4b227a-3d7c-4864-b6c2-35af302d6bdf","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":123,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"91cfe4e9-136d-4309-bf99-695fe084edad","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":123,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"519d891e-5092-44eb-9df3-b38992537719","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":123,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"bffe1389-aeb9-400b-be58-3d0197a211f2","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":123,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"d5332edb-cf93-4bab-9097-0db7682bb466","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":123,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"0fd06a0c-c6b1-45bd-a9c3-0a0f74b95460","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":123,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"f887b417-d32b-4ee7-8204-1c4f2312b899","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":123,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"d4dfac03-87f4-4561-8d9c-1ce7e8293ed5","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":123,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"de53073a-e809-4531-a53b-de8d305dcb2f","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":123,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"19c9ca70-9044-417b-ba31-855d8d6e0a10","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":123,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"1c511ecc-9328-40e5-b027-565162b092d1","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":123,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"03f81ded-3cea-4998-930f-8ff2240812db","block_type":"box","text":"II-92","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4a8285c-dc7f-47d4-b58e-b4d205c6e928","block_type":"box","text":"NM1026U-5978945-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2e6df91f-8eba-4f72-a1f8-ef42564bf5e9","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":124,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"35f3c61f-694f-453a-8b29-04f2e3129f5c","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":124,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"e88ae887-7e0b-4a40-8163-0e40629f5c7a","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":124,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"58dd4457-88bb-48eb-a7e6-86bfa0e22663","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":124,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"dfcc0a41-14f4-4687-ab57-e963da2ea646","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":124,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"9ee3dcc2-38a2-41e2-a346-a99d79e5f813","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":124,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"8246d12a-de58-4485-892d-453a3f6aaca1","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":124,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"41a0b2ca-47d5-4b29-93c3-0bfa4b51ee9d","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":124,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"919d9635-b961-410a-be56-1ea5d979b21d","block_type":"box","text":"than through client commissions.","page_number":124,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"d3a077c6-c113-428a-9c59-ca08cb14ad50","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":124,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"e5871b7f-99c2-422b-8097-bd281a737917","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":124,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"6f639f3d-dfce-47bb-8704-b2923af9c5cc","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":124,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"201ba649-4f07-4b2c-bdec-a56877d19e6f","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":124,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"7961c998-11fd-43bc-8222-183d75b80846","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":124,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"b82b08a6-fe31-4c3e-9816-d21416ebb895","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":124,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"9ec5810c-7a72-4c3f-9612-aac9e5ab1d57","block_type":"box","text":"research-oriented software and other services and products.","page_number":124,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"bf666b27-7144-4f46-88fb-434cf75f60a1","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":124,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"b8d21b00-ac70-4e71-937e-8d49d93a498c","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":124,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"8fd10407-555e-4b82-bec1-79523a65e3e6","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":124,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"d2041667-1af2-4604-a824-ac43ab66ecc2","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":124,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"2d46ddf5-fef0-4246-be4a-9a2f2e76dda3","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":124,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"43ce44de-c7d6-441b-8c53-707b59f0078e","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":124,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"f35b8ab4-8564-4be1-995f-c5a73549c3d6","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":124,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"afa2bf8a-9f84-4fd4-a59a-8b8acd3d4cea","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":124,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"87361ec8-bf16-455e-89ec-6760841e07db","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":124,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"565e043b-9bfa-414a-843e-efe2869e6558","block_type":"box","text":"and services itself.","page_number":124,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"e26814cd-18ae-4e2a-a9e3-53404001176e","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":124,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"c1d94db5-f70a-42d3-ba50-379095abc49d","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":124,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"bda3c34f-8ba9-4867-bafd-ea4936679cf8","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":124,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"7060fc87-57af-458e-bc3a-d3b3309e8d4f","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":124,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"4705db72-ffdb-40f8-9f1b-70c199d6de04","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":124,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"6f86e756-c00b-4260-a7b7-f3e2bf96052c","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":124,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"192ab16a-1b69-43ea-90fa-e4a4cdc58011","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":124,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"9bb5d76e-2604-460b-9969-aa45eaed5d78","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":124,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"042aabbf-6d95-45bd-a734-2da647db8521","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":124,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"babaf24e-6a8a-4ff0-ba33-1360864b4c28","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":124,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"fb87d7ce-11bb-4fa7-b63f-5e863647bc19","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":124,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"05ec809b-4967-4d0e-9c48-13f6bbb7c823","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":124,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"869646d5-e5cf-4b61-befc-32714d92f6eb","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":124,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"ccb62363-4772-490c-bf42-3ce4a8da083b","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":124,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"08c5fbd9-58d5-4e74-acbc-c2b22783e736","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":124,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"c897b873-517a-4d55-ac93-dd4033d72dcd","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":124,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"541856c3-d520-42f2-bded-bc0c98cea3e6","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":124,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"7ae58079-5bf5-41ad-b515-0601b165ae6a","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":124,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"c0b88bdb-f191-44a0-8ba4-d1b7db042fce","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":124,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"12cd4398-8cf7-45d7-acde-880742659d4a","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":124,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"8fd08b2a-0a77-48b2-9aef-f27695c45310","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":124,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"f7af5331-308d-440d-ae6f-abf328615b70","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":124,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"8d79f981-3fb6-4c3d-a741-6c908cd09c13","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":124,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"c5a4002d-166f-4675-babf-7090b4cb68a6","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":124,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"be970bfe-9649-437c-af34-eea072e0e30d","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":124,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"dfb184bc-176b-46a1-9dd5-60aaa0c24df4","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":124,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"627a6703-e7a9-4ed9-ab1e-8df54c859a23","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":124,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"7abd4023-fd34-4ce6-956c-4fbfd289a1c2","block_type":"box","text":"II-93","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"be8f8955-8aae-46a8-8ebc-bcfab0bf6b22","block_type":"box","text":"NM1026U-5978945-124/232","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"93e39819-950c-4bec-9d0f-5dfdf2e247c6","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":125,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"d4d0d929-37ca-401b-b980-b2eb00539445","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":125,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"2d90cf7e-4c58-429a-a91a-4d7237b8f7f6","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":125,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"1d727845-8b13-4a3b-88d9-45b2c878b567","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":125,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"8f5f93b7-b53a-4444-ac98-c74fd43b9fce","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":125,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"debf7f09-42bf-484c-9477-2be3c6397d81","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":125,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"5af9a5fe-5fe4-45a9-b26e-88225d0367ac","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":125,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"170ef454-f9a6-466d-9a65-673e4d3321cd","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":125,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"a310d523-2111-44a5-b536-65d7c5c46239","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":125,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"24f22bc1-567c-40b0-aeb7-35a456488de3","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":125,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"c11465f6-7402-4815-a1b0-7ef236f5114e","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":125,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"2b0a6897-2779-43e6-acd1-1431aed689f8","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":125,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"759c49a0-3906-4e5a-8d61-7b25ea35b1c2","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":125,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"0aaf7644-2b0f-4917-a3c9-37baf1ec1656","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":125,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"a7a450c3-79f8-408b-9617-d223ab61c7cb","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":125,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"686cfd11-8dda-46b1-9526-136a25c2b3e0","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":125,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"215216ad-2a11-40c7-8b77-62546d438586","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":125,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"725cc2cb-4355-4012-8d76-f8e68ba98d4c","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":125,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"ee0b7dd0-a553-426f-8ec3-fa945b93ae19","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":125,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"4801a942-9893-4968-9c13-2c3a26bc6459","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":125,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"24425cd8-81b6-4970-b9a3-55d97549496d","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":125,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"f25bdca1-9959-411f-8599-d506635ae993","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":125,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"f51ef218-8c30-4f6d-a081-639726ae2d32","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":125,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"25c9ca2e-d07b-4e6a-a7a3-c6bd830aa8f1","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":125,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"f13b7de1-3cbe-40ef-9ecb-c4ed6cefbe08","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":125,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"ae0cdce0-802e-4b1f-9b4a-7f2193449036","block_type":"box","text":"some additional expenses.","page_number":125,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"4825b9eb-53d8-481e-be6a-a637e294a20e","block_type":"box","text":"II-94","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a09a702-bbdc-45cd-ab7f-0ef5350e4d93","block_type":"box","text":"NM1026U-5978945-125/232","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cee10f7e-48f6-4f17-8f4f-a5fabc2bf297","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":126,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"bb735a7d-cb0c-402a-b22d-d8d3ea320392","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":126,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"9c6b4074-a55b-4a07-b445-a92d2c02eff7","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":126,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"acde8c1f-ad3f-442d-b1f1-3379d2b2b596","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":126,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"66eeb465-858a-42da-829c-e21b63102784","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":126,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"3f87d39f-7caf-4cdd-9395-6cb3437bb37c","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":126,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"77923462-f280-4cb8-87a5-36e062633588","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":126,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"54eb9e4c-7a3e-479e-8195-9609bb2c6197","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":126,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"32d8d444-5c9a-4260-aeff-224c477e29d6","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":126,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"53d447f6-ef16-488b-8149-453dee438908","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":126,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"82504c7d-1575-4a25-bb15-154e3264e9df","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":126,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"aefca0bc-1505-40c5-b508-76514ffbf5ea","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":126,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"675257e1-4357-4dc4-b5e9-ab3eee476fdf","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":126,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"5c35bc03-8f58-4ee6-8dd8-a881a4e8d1c2","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":126,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"e9b46915-4e98-4468-b0c5-6c5fa9d87475","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":126,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"25e2bc18-42ce-4a78-9e8b-07f986315d9b","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":126,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"1621d03c-bbb8-4a47-957e-a418e283e826","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":126,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"b501fb9e-8757-4119-8cd3-c77d6cd666cd","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":126,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"7a51a5f9-6594-44a1-bd0e-b6b0329e99a1","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":126,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"a3f5c273-9d59-4085-90d8-20d636d88857","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":126,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"bff85902-e902-4178-b9fe-16bb59e3b8da","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":126,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"52dfd408-a063-4988-99b4-63435c4105a4","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":126,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"48b4fbfb-52ca-42aa-93f6-cb10f975ce5f","block_type":"box","text":"public information about the company (","page_number":126,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"9c8fc412-d024-401a-9f81-b382c4bc3ecd","block_type":"box","text":"e.g.","page_number":126,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"d5182159-4e68-47a7-9a35-8d0bbba401ab","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":126,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"a095fce1-2569-4a4f-8670-05f0221ab52a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":126,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"bfab6f79-194d-4ebe-8e9b-a6d1dbab8a4d","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":126,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"685e3444-d065-4bac-8027-5f18b90a3f1b","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":126,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"b13ada61-64d3-4c38-b681-88d68505fce0","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":126,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"c13a2725-495b-44fd-b4a0-67fe923cef74","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":126,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"fb6f3c24-318a-469d-b75f-fa7611cdf4a2","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":126,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"28801209-2419-4c25-be43-5005bd234ead","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":126,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"ce979692-5fab-4cbc-97b2-f99c3dd1c447","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":126,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"a31e3200-297d-420b-b76e-9ba685337c20","block_type":"box","text":"of the issuer.","page_number":126,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"91ffcb38-00be-43a0-9b63-c5848eeffd6b","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":126,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"f141a0bb-e48e-45f4-a8e5-fec162e50308","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":126,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"33afa898-121f-4899-b217-e29ecaf0eb97","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":126,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"18e955c5-ae0d-4e34-8991-a29d216e7076","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":126,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"987145b2-3814-4360-ad36-712719eb5b78","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":126,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"32236cf7-05f0-4682-a535-4930a28da00f","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":126,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"aa156bba-163b-4483-a468-5834f8793a31","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":126,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"fe14674a-ffdc-4d3e-855e-0ea7085c32e1","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":126,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"92af8087-c35c-41ed-bbf7-680371a1f4a1","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":126,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"fbbb305d-a6eb-4e00-ba69-bf0ab2f3a4e3","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":126,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"ebe5c14b-9e34-4dd3-b91c-9fe4ac530cc6","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":126,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"e310a948-5f8b-4c18-9a07-d60a94b6ef65","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":126,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"2678c431-08e7-4598-9a04-47abd065c019","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":126,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"7105d9ff-74c1-4fcf-9483-8cec188556ad","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":126,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"952a3e92-8665-4307-bf7b-93b8bcd9421f","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":126,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"5989dd01-6cfb-4609-9914-776b7a510b49","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":126,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"f26b031a-1a37-468d-98e4-7b29f163ecec","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":126,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"4da33909-97eb-4362-b500-7c7c533e71d4","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":126,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"41255586-7396-42f7-81f7-038e83827754","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":126,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"e792ec54-fd64-4a11-9855-e41347cfa5e3","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":126,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"135e9887-10f5-44f3-85cc-93d6ddaef487","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":126,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"804c553b-21c6-4f7d-9f26-dd7af875f261","block_type":"box","text":"II-95","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b23bd2e6-30b7-4e52-9524-48e0cc138c9d","block_type":"box","text":"NM1026U-5978945-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f1372360-cf3f-4601-86fa-5ddb5714572c","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":127,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"f9d5b290-fae7-436a-8063-4016ab51180c","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":127,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"34a8e5d1-37c2-43d6-9e7a-72752d5d7f26","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":127,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"ac26db53-8331-44f3-a30c-d02f1c4fdf8f","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":127,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"6b6b88cc-7420-4863-9b38-15b8d029a107","block_type":"box","text":"a barrier.","page_number":127,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"0eec1323-e83c-446d-92d5-c42e879210bb","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":127,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"e5e5e39a-eae9-463e-80ca-1a3f91b3bc20","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":127,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"be011ca0-dd5b-4381-8f32-da49dd3854e6","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":127,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"3950738a-1c5a-4d33-9eb7-3472f213c2c3","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":127,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"4086bdc3-ed60-4e4a-ad0c-00ce7dc279ad","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":127,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"fc6769c3-7e70-4435-88fd-24e63b68fabc","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":127,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"3fd118f7-33ee-49ba-ba2f-c950d85a00a6","block_type":"box","text":"that operate in certain industries (","page_number":127,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"b1fd0f2a-34e2-4a2f-bd1b-ea6cf5cb9463","block_type":"box","text":"e.g.","page_number":127,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"fc10728f-d24b-44a6-94d0-29c8c94f5239","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":127,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"035fc3d0-5529-4244-8710-04c720f143c4","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":127,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"fa07d2e7-51f0-4025-99b2-becc7e4d3cd7","block_type":"box","text":"e.g.","page_number":127,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"255f4841-fe9d-43d9-b22f-8ae68caa4f1a","block_type":"box","text":", with mechanisms such as poison pills","page_number":127,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"bcc69fa9-e288-45c2-b269-1eecba1caede","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":127,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"f68064b1-697f-491b-8871-b71446ed3f0b","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":127,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"5fb42d50-a530-474f-b7ff-dbd25e619e17","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":127,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"2459fc3a-088b-4312-b922-a05127f5a64f","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":127,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"96c86d52-5853-4474-adaa-be4d9de680e1","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":127,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"062d05da-48d5-4bce-b87e-5d76459858a6","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":127,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"09e87097-666c-4f9c-bd91-d51a4fdd5cde","block_type":"box","text":"seek to make indirect investments (","page_number":127,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"54048cdc-f1ec-4b80-ae52-95cb34ecc5e6","block_type":"box","text":"e.g.","page_number":127,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"5cd5ab0b-046e-4b97-86ab-f22170f8ec3b","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":127,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"519a87df-e62e-4af1-97e3-7b725f104a64","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":127,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"5d262340-fb5a-4b87-8955-8e63b1d7363f","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":127,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"32400892-16fe-4717-b704-3a12908b88a7","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":127,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"e12d0d5f-f6f4-4014-b045-96aa34576939","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":127,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"0cb2a617-3c86-4019-8ac1-5ac4ae33b57f","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":127,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"f3b9830b-e992-4089-b8c8-28b8ca67d2a9","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":127,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"25173138-1958-4d0b-91e1-948d824966e1","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":127,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"2f667024-4fb6-446e-a288-b59ebd9b55a2","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":127,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"2cde488e-f839-4591-ae81-38450afc7d98","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":127,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"1605ffef-5c44-4ed2-a068-b3bda2546607","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":127,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"ab4c9222-b647-4336-b033-ff7ffddfffed","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":127,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"d8e56b37-cae9-4637-a84d-a5b0a60b5993","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":127,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"7c75d3ce-fafe-40be-9d59-488289ba187b","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":127,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"c0af6cb8-7c6d-459b-ba10-2ca14a2f90a8","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":127,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"8c3fde85-882e-4782-a012-ac49d7e2a582","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":127,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"f1af10b2-1b9d-42ed-a6b9-dd2715703c72","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":127,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"dec93793-5964-483f-842b-a8a87fb3fda5","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":127,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"10c5868e-edf5-4992-9277-036a24b84b8c","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":127,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"24801d45-f44f-4259-8013-daa9487eff34","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":127,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"005c6340-8fea-4e0d-be3c-9a46ec37d414","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":127,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"c03d60ea-a1e8-445d-ab29-528ffd4df901","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":127,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"00bccede-1b54-4051-954a-e76bfcdab049","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":127,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"f6e723c1-7ef2-4387-a2c8-2f8ad534ccbc","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":127,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"a22a96f2-ebdb-4d91-a80f-debe186f5b3d","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":127,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"fa878fe8-0782-41dc-a99d-4292afbef135","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":127,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"cda3ca9a-8734-4016-adb7-7597da31d2eb","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":127,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"71e5a7b4-552a-4aaa-9f91-ec9321b56c49","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":127,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"c25f47e8-9b60-4939-bbbb-dbf7b7c3305a","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":127,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"32905d5a-082d-4cb2-b79f-a44a0ce5ee6b","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":127,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"03e6992e-36bd-44d2-b293-89979d446c28","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":127,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"80559b81-2fc6-4b3d-82b7-d2affa81e0eb","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":127,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"05082d5a-9f24-464b-8a39-70e44dd15a92","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":127,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"49eac88a-cd09-4aef-b658-c927e1c0184b","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":127,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"3c524dba-2e83-4869-988d-6ea99d6145b0","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":127,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"d13c4792-822d-451d-bd65-22cf46eca291","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":127,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"f66c911e-118c-4f3f-b615-f22ad2c899ab","block_type":"box","text":"actions. 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It is possible that, despite BlackRock’s intent to either comply with or","page_number":128,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"8356169f-5460-4d4a-8858-c5aa47e3f517","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":128,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"5a6b2176-57f4-4919-a2c8-3340fd04a5a9","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":128,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"9728e297-5ce3-4044-8d48-7162178404e0","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":128,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"6ab6d476-5129-4d1b-8a39-b7cd604ad3bb","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":128,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"67a2263b-5760-446e-98a7-32f6b7dadec2","block_type":"box","text":"strategy with respect to such security or asset.","page_number":128,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"e057de15-27fa-41a5-96aa-755b3c1b8951","block_type":"box","text":"BlackRock may maintain securities indices. 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In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":128,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"93df6245-06bc-4cd6-82a5-5023d8bae04c","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":128,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"d850a7c2-fb39-42b9-b876-c06bbd3795a0","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":128,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"fdae900a-0c11-45cc-b26d-9843bd612903","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":128,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"25670b67-608f-49fd-81e2-bffa28b011be","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":128,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"64fef6b4-07e8-4905-9097-f53584fb6c2c","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":128,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"73ab3ba2-71b2-430e-b7d8-602a8a2b8ba7","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":128,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"3e091bd8-95f3-44b2-bbd5-ed22bd1cff7d","block_type":"box","text":"e.g.","page_number":128,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"3ecbd9b7-cd1a-488a-93d6-268924a1dabe","block_type":"box","text":", custodians,","page_number":128,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"400b7258-cec1-4e69-a3e1-8f629f3f0ace","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":128,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"fdd2b7b2-fddc-440c-9ebc-689a35791447","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":128,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"d79f9fcb-f3c3-4f67-b1d7-2ca4561aec6c","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":128,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"49f6b38d-a7bb-45f2-8ec9-796862fcf09e","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":128,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"811ecce9-420f-4ba2-ac1e-e57480ad707d","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":128,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"f2afd3cf-f753-4c40-9d97-2d5c0b10ba2a","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":128,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"060d9c04-6d7f-4f8e-9745-5d97d1735bd1","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":128,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"ad361f04-1463-4616-ae18-2172d14158c7","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":128,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"b93ef7ab-e1b7-4225-9a34-af6a3fed2343","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":128,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"9ac17173-5e10-451a-aea2-7609df46684d","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":128,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"edfe379d-fe61-4dac-8aad-d3afb39855d9","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":128,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"ad82d1da-916a-4b4d-bdca-36867a7fb051","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":128,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"0894a934-8fc0-440a-bb84-688936c3ca33","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":128,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"a15ed35d-b9bc-4f1b-9de5-4332cb62ca95","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":128,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"fbbbfe7d-5976-4d2e-9ffe-5bb1d62d5b4b","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":128,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"dd9d0021-d34f-47cd-a0c1-53ec41eed029","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":128,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"c7d7cef5-957e-4b84-a285-8fbea5e01ebf","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":128,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"eefd49fb-5298-4e72-bd39-1b802765f95c","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":128,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"8fb42c91-d962-4c11-b40d-34651342b585","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":128,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"50e9908d-3bbd-4140-b1a3-2382c7d5fb37","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"a128aeab-0002-47e5-8270-a946dee4cb9b","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":128,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"10fb6ec5-4f0a-43d5-a9dd-336114937e8d","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":128,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"1bed8f67-6025-436e-9473-74739e1c86e7","block_type":"box","text":"provider.","page_number":128,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"65f7608f-89ed-4d76-8b3c-5639905db6b3","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":128,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"1b118201-0014-42d2-b63f-43eb17586f90","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":128,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"7630b989-d27f-464e-84ec-f0194311a5ce","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":128,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"f3b09c3d-9714-4a11-93e9-742043de1555","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":128,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"a5d6577a-c2b6-4173-9826-73fae3310aba","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":128,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"665b7f87-0ea5-48bd-8cb9-eb9dd226e869","block_type":"box","text":"PURCHASE OF SHARES","page_number":128,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"de3a43e7-3349-4369-9731-fc2cc03ef1ec","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":128,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"4b5474a9-72a5-4d0a-ac7b-b2d72bab4fa8","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":128,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"da041b06-5b76-449f-aa40-a8e931bc5c86","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":128,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"b267ff70-a5ed-45c1-9ccf-8db0e83b61ed","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":128,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"744878fd-6816-4c6e-8fe0-9706b69e2efa","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":128,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"92b96d22-61db-40d4-b69b-5516170e1e7a","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":128,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"a7fd3dc6-b912-4e7d-a910-146cd6833b16","block_type":"box","text":"II-97","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"921094d6-6579-47dc-a2aa-1824962a51e0","block_type":"box","text":"NM1026U-5978945-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"903c2483-8b2c-414a-9956-002b6501b6e1","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":129,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"e51da44e-654f-4e2b-ac7d-dea4620705e8","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":129,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"93ecb6e8-6ed8-4022-8724-3778eae75035","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":129,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"e89454e4-cd75-4b6e-8714-67ba4da08989","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":129,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"fa3eb5a0-1c7f-4c13-93d2-bb973414dbf3","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":129,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"869d0273-2d0e-4379-a4c9-ec7aaa8777ef","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":129,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"0e6038b1-b487-42c4-b4d2-29814059a533","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":129,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"0ded1bd5-411c-464a-9eb6-823aa67df1e0","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":129,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"064fc143-e2cd-4797-a691-c7faac4a5218","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":129,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"db356ef7-3381-4cc2-84f4-4e26d672adc6","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":129,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"e96328ca-c40e-414f-a1c6-b92994c14cda","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":129,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"b5d38f00-9b3f-42a9-bdd0-551f62abd799","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":129,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"ea4a56f9-bcee-4977-b500-b606ade575f8","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":129,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"f8040707-4902-465c-a629-442a5f098625","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":129,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"9271720d-9e3f-429d-98be-0243acd3cf5f","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":129,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"4d2c3f1e-b1ee-4ecc-adcd-b492dc4b17c8","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":129,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"03abdefd-ee49-4119-b0f3-9b80f8dfe2d7","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":129,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"de29adba-a803-4d71-9f31-52646d1ea66b","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":129,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"a8e4ae74-6c94-4be9-881d-7f745fbcb28c","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":129,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"65948057-a97f-4727-b8fd-1db85a18bceb","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":129,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"9be630ae-0b13-4633-ab68-816899e915e8","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":129,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"621e8b9b-aab4-4672-8038-867bf7297b5d","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":129,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"e17e288a-3327-47b4-8acb-2487bea50236","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":129,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"74965502-3369-4c58-b9ad-3840acb844ce","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":129,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"78e6b0d7-14bd-499b-bc3a-2c916477c169","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":129,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"fa16dd34-796e-4e55-91d5-7497d58019d1","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":129,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"92498de2-7d5d-4fb7-b4a2-7bdf7ea7d1a7","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":129,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"f49aede2-5678-40e6-9860-e5fe3000df1f","block_type":"box","text":"investment is $25.","page_number":129,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"3d0514ea-0413-466c-aaa0-482fb84c452e","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":129,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"2700af16-b492-4854-8fbd-0e49069895cd","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":129,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"10829e28-d83e-408a-99cd-fbf18e17bf9e","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":129,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"1ce6b36e-f4d7-4e58-b670-6c115a53d5e3","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":129,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"44718db5-9ef9-4197-b66a-9bb916527514","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":129,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"0a55c5a9-8f1c-413c-842a-4b7300d8cc74","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":129,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"f8d32682-b8d5-47df-a6f0-0cee7bbee13c","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":129,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"c93a6a79-8722-4004-828b-dbed0d5dac0b","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":129,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"ff94bb6d-eb6b-46ad-af9f-4bd81e336fe1","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":129,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"1001cb5c-f75a-431e-9fa8-76f3cee44839","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":129,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"aeed6e92-be2d-4e3f-a7d1-1961dd449f30","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":129,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"011ce6cc-2656-4226-a9ed-67f71c8181db","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":129,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"0384cd1c-aeab-4ccc-b076-f7a3cb91b216","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":129,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"ce54550c-57eb-48bf-9811-14894e81d2c2","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":129,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"3d71dcd1-1fb9-45a5-8b96-017c3b006b3d","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":129,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"fbcb950e-03ff-4757-8844-1e0c33f20712","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":129,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"9769fe9e-8e5e-42e1-86b9-ef3e6be8e816","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":129,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"f23a0ebc-a013-407c-87b2-03da9944f6a0","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":129,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"067aec96-572c-47f3-aeb7-6e15a8562144","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":129,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"cdd6c914-632f-44ee-a566-88255be10f22","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":129,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"823bac28-5948-43d1-97aa-eab44e951975","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":129,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"ec25d704-d484-4123-a3db-0f4a73c322d1","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":129,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"b11b04b6-b88f-4673-ac01-b61bda606e1a","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":129,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"08d8fb1b-f657-4882-af23-36272d45ad41","block_type":"box","text":"adviser.","page_number":129,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"98b0a18d-46d4-4a96-9ed1-8c5f53adb636","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":129,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"6fe70a01-efde-46a6-bf2e-157e10c45cc2","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":129,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"bccd3b32-d0e5-4b9f-85ce-2e9b82b08687","block_type":"box","text":"II-98","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d697b8d0-aace-4524-b360-e4dc4035f7d3","block_type":"box","text":"NM1026U-5978945-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5ee5a519-198a-4760-b495-ab257791129d","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":130,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"73c51f2b-80b9-4429-aeee-1ae392107b5d","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":130,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"236b5874-f21a-4487-a127-ce00cda04f04","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":130,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"f6558faa-a634-4499-bc8f-b3ab2ba21519","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":130,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"421f9b96-034a-4aad-8467-81e508e599ea","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":130,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"06ade836-06bc-4a2a-83af-694fa5c0e2cc","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":130,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"a1fa6bc6-ec58-4927-8374-72a69b8fe3e6","block_type":"box","text":"also be restricted from making additional investments.","page_number":130,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"680e3b76-ef38-4288-8191-a4053994d03b","block_type":"box","text":"In-Kind Purchases","page_number":130,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"8777a625-23a1-4cc6-89a7-6ccef49a3e6a","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":130,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"307f6cf2-1cd5-4034-ac18-73dfea38724b","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":130,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"f35a42dd-23a8-4faa-b8ed-e9c94f749d87","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":130,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"cdedda0b-01da-44d2-979c-21ba1b55e1cd","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":130,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"97c1b571-cd6c-4549-984c-41dc2d80fef1","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":130,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"eefe494f-aa8b-4467-9a54-db9da1aa6687","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":130,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"94088002-716e-46d0-9122-9e6fc823198f","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":130,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"1651a526-8c5c-46d7-ae42-d628c748c37c","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":130,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"924a4501-e623-4fb3-8313-d96a04bf6948","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":130,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"12c7aeb5-1432-4b14-bffd-fd7081521c0c","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":130,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"00e46aa2-a0db-4684-b6b2-27766716b39d","block_type":"box","text":"has settled.","page_number":130,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"6ce15a29-cc59-4233-818b-44979b8b7d8b","block_type":"box","text":"Institutional Shares","page_number":130,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"b5b121b4-6740-479a-8188-8522fbf94aea","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":130,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"08b44cc5-ebd1-440f-bfcc-f9d3aa1451d0","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":130,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"aed16938-a6ff-40cd-99b3-2afcf6148509","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":130,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"6d1e8d26-2be6-4063-8e9d-652d233ff382","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":130,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"863a44bc-ed8a-4328-9014-e15f1a663cc5","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":130,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"6d88962d-9769-4915-8f86-fec0a27c0e8a","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":130,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"4a0bf59e-4868-4ab3-bed4-cb7fd54648e5","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":130,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"80e60d98-48cb-42d7-b3fc-5575a6cc738c","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":130,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"37ce15f2-d63b-4012-8770-a28b824b8187","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":130,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"09ff59d2-26c8-4f0a-8777-040ed11d1606","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":130,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"4416068e-babc-4797-bc2d-5aff286c39da","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":130,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"c5b70f84-2aa2-4142-81ac-5e826bc2636d","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":130,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"026a4842-fd51-4d8d-b8a1-14d0db4de35f","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":130,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"574e0943-2966-4548-9400-e2d9717f83af","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":130,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"6f028c7f-ade2-49dd-b8fb-b86b25531723","block_type":"box","text":"these fees and conditions.","page_number":130,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"bc0cff68-0f46-49f0-896e-876fd18e6e69","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":130,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"43e89e8e-40ab-496b-974f-dadf155a274c","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":130,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"1af23ddf-a60e-4361-89c5-300754efe7c7","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":130,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"3ca7e22f-2263-4087-a828-86ea3f0cd99b","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":130,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"8f2789ff-fbd3-43ca-b1a8-934864390d00","block_type":"box","text":"incurred by the Fund.","page_number":130,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"3cb19ccc-5989-495e-9298-43e554bd347e","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":130,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"3dbced08-5fa1-400c-8a73-88c56a99be23","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":130,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"c185a89c-a410-4613-812a-2f6ba5b65521","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":130,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"df9d3e56-b570-4159-890b-63a7206d7d82","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":130,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"297a2d26-5057-4901-b654-4e1886ac5d72","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":130,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"4c8eedd6-1966-405f-8158-19ac19542af6","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":130,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a3c03746-3f8a-4bc1-b94e-4f633044b813","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":130,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"b4c030e4-b1e3-4e43-8ef8-7e7a3e2fd2d2","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":130,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0f36f7a0-d357-47b2-85dd-0c979af835c4","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":130,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"75f8f53e-1c9b-4076-9fef-0f0cf819c9a0","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":130,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"ecc5bd85-6069-41e3-916a-db49737559ce","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":130,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"71528c89-ca6f-4142-92e6-3d38d86d4ce7","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":130,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"788e7123-3d13-4ff8-8df6-47eb002a91d1","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":130,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"cdc09db5-7cad-4ed3-8bbc-8e0c30453c49","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":130,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"ce9d728b-78ea-4eca-9381-6b6391897dfe","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":130,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"3f997351-f1a2-43b5-a00d-f0ae4be08f1f","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":130,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"7d0d6625-377e-48bc-a8a5-e894f37aa976","block_type":"box","text":"II-99","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3046e791-b79e-4484-a0cb-756465b38943","block_type":"box","text":"NM1026U-5978945-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2e531c40-9429-4c5c-a3ac-02fc2efc20a4","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":131,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"6cea3aff-7c1d-401b-8518-2fbba1ad069c","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":131,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"166484f6-4c64-42bb-aeb9-141237f39f52","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":131,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"9122fed0-0c6a-416f-aade-ab79aa8007c8","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":131,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"d7f54291-c38b-4eea-85c6-5d137910a534","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":131,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"f07d3806-4df7-469c-86a3-7f3e842f8cab","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":131,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"81b4382a-7c39-4255-8b72-dcfb3165d265","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":131,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"38991ef1-cb63-4dc2-82a2-b0bf353190d1","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":131,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"0c2b37d3-0694-4ce9-be84-b837281ec39e","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":131,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"46ef4d56-1f57-4de3-b49d-dddcc959db42","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":131,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"9cd41c75-ca21-4ebe-a693-f2daa35f57ea","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":131,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"c0e5a98b-d2e5-4077-93e9-dc3dc7419998","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":131,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"2152149d-67b1-496f-a749-70cd23756b40","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":131,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"fbf23a79-f982-4499-932b-88392cbef64e","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":131,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"7245218d-0824-4b7f-af12-4b970b8a5f10","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":131,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"70b73ce3-2474-4ce1-9677-fb5c0dde0277","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":131,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"595d220b-8831-4ec0-8a41-9a75d798c084","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":131,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"fdfdf764-ffbf-45bf-9d10-4a437303329b","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":131,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"31208194-d20c-4274-8ab6-7de3bf423900","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":131,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"a018af8e-1d36-4a94-aa47-178b0833b598","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":131,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"f35d1efa-c567-452f-b9d3-f2a276ff4c4e","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":131,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"b83164ac-9885-4b10-805b-6cdf2178bbde","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":131,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"e055481f-20ba-42d6-8f5b-e7d0d24483b6","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":131,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"544b3830-956c-416e-a839-d9bc3225e7d5","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":131,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"4104f076-7883-485a-b412-76d0c2cea791","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":131,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"c27bdffb-b3ba-473d-88e2-120cf4ec81e8","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":131,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"440ae5f8-d2a3-4e9e-a75d-e935b963c2f1","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":131,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"89373ce3-c78a-4473-ad4c-e3d01eda51ae","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":131,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"4da01c52-4725-4e45-b107-f86af6188c21","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":131,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"e52e234e-e60f-4ff7-8f81-493fc4b27758","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":131,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"61631070-782a-4489-83dd-97acb52ac25d","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":131,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"84203211-2396-4373-9d52-a8d7f020e03a","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":131,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"bd0c610a-77c1-45cb-8cbd-97085d08d761","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":131,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"5ef8817c-b180-4d8b-aae2-10e6a2944a63","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":131,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"a33d9a74-f2bf-44a1-939a-80a51393bb25","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":131,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"3efa1a6b-5d7d-44e2-9df0-1ffaca60cbaa","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":131,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"6011fb20-aa39-4471-81ea-4943f3a81129","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":131,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"69ee48f7-9c23-4f26-bf6c-297c136bae63","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":131,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"a4c13d2d-6ae2-4c93-92d4-a993e35649ad","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"9bf56bee-2b08-4fc4-bf0f-784989ffab82","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":131,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"d51801a4-61ae-488c-9e0b-8e3f4f02a47f","block_type":"box","text":"periods indicated.","page_number":131,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"584d63d0-e522-4dd1-80cf-619e1e7baad1","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":131,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"4ae294d8-fc63-485a-b1cb-f0d224a9a6ed","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":131,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"661fbbf3-6ef3-4d29-8c63-6bce4f137d92","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":131,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"23de0918-9ba9-426e-a77e-2905384845b9","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":131,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"96db5c0b-5f7c-4124-8090-429fc4b6ce71","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":131,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"d5309269-808f-4563-88ea-8922297bf67e","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":131,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"8287bca8-f897-416d-8a66-c04ec7d09bdf","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":131,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"d9bcec95-7639-4d32-8968-92d197303659","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":131,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"1318f28c-4a48-45be-9c2e-fef7a53b39f7","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":131,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"14ef4ff8-ed97-4067-8f46-afbaa819139c","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":131,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"26e28f20-a3c1-4614-bd85-5ebd42a97dac","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"afea2cc8-3c1c-46ee-8d7c-58d3381d4a5b","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":131,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"9b12b2fb-64cc-489b-857c-3c25c78c77ba","block_type":"box","text":"II-100","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"60816ef8-7b63-4f83-888a-cb509a99d351","block_type":"box","text":"NM1026U-5978945-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a81cde40-f233-43f7-aec6-2e4c6e677bf1","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":132,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"a0df6811-756e-405b-8225-36462fef7db4","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":132,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"8189da52-1ce0-4346-835b-283a649b3ab4","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":132,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"3a7fd3ed-e0e0-45e5-b722-560f29824103","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":132,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"e94af390-75c2-4f5c-a62f-64f406297680","block_type":"box","text":"Reduced Initial Sales Charges","page_number":132,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"5ba6a114-8846-4114-9edb-b4425a71d76b","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":132,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"0476844e-7bc8-4797-a876-b32253ed4257","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":132,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"4a92f2cd-5099-494e-a1e5-78b041b195bc","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":132,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"db65d5eb-25af-4704-b78d-edc82bf9b024","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":132,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"50a69ee2-d665-40ee-a087-6effbb496576","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":132,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"1e37b163-ef9a-4ea8-a229-65f6750fba73","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":132,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"ca7bb29f-42d0-403e-85d3-9148d0e2120d","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":132,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"24439e3f-6cd5-4176-b17e-e31ec01d9762","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":132,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"7fde6847-aec0-4a9a-adaf-6ff77856a625","block_type":"box","text":"Reinvested Dividends.","page_number":132,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"b4223ad5-7c45-4e53-8615-27014773a6e7","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":132,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"2c007b71-bd82-4954-a7b9-3454d06fa168","block_type":"box","text":"reinvestment of dividends.","page_number":132,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"04b21da3-c7fa-47c3-9923-a5445397ce16","block_type":"box","text":"Right of Accumulation.","page_number":132,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"3a3333a0-b7b0-45cf-a59e-8fdaa116466e","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":132,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"286de024-96b2-4bca-80f1-a3e46017876f","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":132,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"57ef573a-693d-4d49-ab70-6ee880be2a6e","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":132,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"d8563141-2e3d-4e98-a26b-da93aa6e1e8d","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":132,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"a2d9bf34-ac55-4787-ac4f-acd160d7ca17","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":132,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"ee29a8cf-10ce-4381-a100-ce318378a539","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":132,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"48b57ce6-9eda-4ec4-9c3d-a170ec6d31b7","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":132,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"cbf33db7-4c81-423e-bc63-257a692368f4","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":132,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"a0337df5-7ac4-4d74-a0b4-db08459d5b6e","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":132,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"f348d6d1-4484-492a-8310-d3b76198bb87","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":132,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"26ba2478-ba2a-4971-9351-3ff3d30e21f5","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":132,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"9e87114c-fcf9-4a9d-a950-bf30bb6c7bdb","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":132,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"91e4116b-0ff3-4132-8132-bd611e494483","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":132,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"ea77af7c-8496-4a85-b73f-1c5b81895cbc","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":132,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"e2198b06-e131-4800-a6e6-c53bde93389f","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":132,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"4000be39-9212-47bf-ab35-9227f8e6d2f3","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":132,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"7933edd4-890b-4495-833c-f3bded78771a","block_type":"box","text":"Letter of Intent.","page_number":132,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"a4546d23-95fa-49a9-88ec-c50f736bdb41","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":132,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"9ab1bf1b-6ca1-47f3-ba74-760c5e4c5922","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":132,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"db4a297a-b528-4c2e-8678-dd6bee7a852f","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":132,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"172b04a7-1d80-432e-874c-755a2dbb8686","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":132,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"29500940-0caa-48b5-9b02-b5596b0d5ecf","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":132,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"70e09409-0365-46cb-9603-2da2da53bba0","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":132,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"4207a581-9cc1-492d-95ca-1624c355f550","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":132,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"51f01453-5de9-4b5c-ac34-3d30d9ca8504","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":132,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"838d6773-e2a0-4ff0-a2bd-6df115cff48e","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":132,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"e96c6d10-9bd9-403a-82d1-72480b28392b","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":132,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"b7d44f65-1d39-483b-890b-f772109d7142","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":132,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"5e9a3f7f-c711-4db7-909d-813758d56ec5","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":132,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"56514a59-c273-48da-a6fa-8e2b99050944","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":132,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"30cc9577-3a13-4d4e-9618-d05ceab0c14b","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":132,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"2d6c5385-94a9-4b9a-8cf5-6c8992919f8a","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":132,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"b484e2d4-842c-47dc-83b8-d1c74251077c","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":132,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"3bf00a6e-fb46-4584-9bee-1719f430aa14","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":132,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"f2d22db0-694c-4c91-bfad-cf81a5ad3594","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":132,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"4f7c6bbb-f510-4d2e-b53b-811f715268b5","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":132,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"60517d0c-9104-41d6-bfc2-493945ac4d29","block_type":"box","text":"Placement Fees.","page_number":132,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"79705e65-bd99-4be3-a753-bc4cdb03bd10","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":132,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"cb429dd9-5076-44b6-9fa5-4cbe8a6702bb","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":132,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"2325e616-15b8-4b93-a6c5-cce8754d5f74","block_type":"box","text":"II-101","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1ca499cd-1232-42cf-96c5-188a05d5011a","block_type":"box","text":"NM1026U-5978945-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8c55c09b-a837-4630-bdcd-317f7e6c837d","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":133,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"db8a9a3e-cc8e-4da1-932a-e885cba71c12","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"87c810a1-7460-4df4-9c81-8392bb7cb89a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"858e1e33-4630-43eb-99eb-7ab837d41188","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"d4026d82-96ce-4892-b748-4973b1e6f58c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"917a46c4-0b50-4cff-9d5e-f4c6eab2ad41","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"082a9f2e-09ac-4e64-85ff-7b60d0b16c05","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"8758fee6-02a6-42fb-b44d-e25ac443958b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":133,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"43d75b4a-6b75-4947-b94b-59dbb13520fb","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":133,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"f9f3a138-abb9-485f-aa9b-9bc62fe54d6b","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":133,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"397ee1ed-fe83-4a86-b881-a0cec2e65069","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":133,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"3ea1bd60-cdb0-4521-bfab-9237ef27ed03","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"3a2a7043-b42e-426e-982c-7ee549a0157e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"937f214e-3575-440d-9751-4c183301bfde","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"22258812-822b-4fe8-bad2-23c4dbf81836","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"7c461d3f-f3a5-4fb9-b2b2-b8fd5ff41aba","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"68f176b8-239e-4d01-9759-2a0d6d2344b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"ee6ebde3-4195-4346-8b8a-1ed51d2e8589","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":133,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"58f5f64d-e713-4bef-a8d3-09e9b6ee35e0","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":133,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"3e70fb83-0773-4170-be1a-a4885a36c8ba","block_type":"box","text":"SM","page_number":133,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"fd35822e-bf6a-424b-adce-9962aff35f3f","block_type":"box","text":",","page_number":133,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"16ace0e2-913f-4d69-9eea-cedda9d06cab","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":133,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"5669c56c-9e84-4347-bfe4-06a8a8920fda","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":133,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"a2e74bfd-5d58-4e3f-8bb0-ddf4e82e5283","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"98dfcc1f-dc1d-4388-80da-ae82d581c65d","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"585377b3-331d-45e2-9a05-99cdfc1516b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"33539e98-5cff-4315-9e83-3ae967af6895","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"f40ea4ac-7060-45a3-ac5d-6253b3094ed5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"f98a0f13-2857-4360-8360-b437646362a5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"c9124352-ea10-4950-825a-f57632936db3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"8f5d5eb9-284d-47c4-ac3a-5bb89abc72ac","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":133,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"5bcc95f0-c8a5-49df-be7c-b882b37d0c34","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"fa5066ab-1fa4-4af6-8f2c-240669085a25","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"06f9404b-e3fc-44fb-bae1-cbfd2128fbe2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"dd7b4dd5-e4e7-47de-a6ea-6cd8d6b94705","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"6e6d8c91-d204-44d5-8e94-212904f69243","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"c69345f7-c555-435e-8827-5fdaf8df092d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"eaff4903-159a-48f8-a152-cf045dc49f37","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"10792ab7-4cba-47cf-8d71-6cb79273e4b9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":133,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"f10e46b0-b8d6-4357-8446-72fdf639b397","block_type":"box","text":"may be up to the following amounts:","page_number":133,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"04261997-6ebc-4cc2-bfcd-705af58587a9","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"3558f2b1-a9a9-4812-ad6a-000f7eaf19aa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"7a0f227d-5529-49ed-84ca-b2725efe8b19","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"02c5b23e-9b44-4cb5-97d7-a268adae2a14","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"6050fe64-9fb4-45af-83b7-2e678d6afe5e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"f66ab731-c5bc-4bff-aa2e-21e04bfe3180","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"97dcfa34-7369-49d2-9c1c-5d3d71ffa271","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":133,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"b1b2d74b-9d5e-412c-82b4-b53f56f29000","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"7bda5e1a-4ba0-4ef3-9d07-cf04d8934475","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"0d6fc60d-8f41-4e90-873f-d947e2327d97","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"17e1afe5-2118-4ba7-9e44-2f9aa6c80f9a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"974ad1f1-ab8d-42ac-983a-681d5c1a32d9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":133,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"bfca7aa8-18a1-4225-a880-cece4d89160e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"6972da7d-a92b-44e5-bda7-b1e4d2b2fe3b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":133,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"63d7fea1-4821-40ad-8ad3-bd00640c9365","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":133,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"2193c311-1365-40f3-b42f-da33330170f2","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":133,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"1c694f96-3cb3-451c-bc67-5bcd48862476","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"a7160051-1a7f-487e-81f0-3f9e725acc38","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"96d81ad0-b7cc-45da-819a-f178febd0a6c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"588101d2-a255-4823-98ad-3846a7b058b6","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"9d9bcaac-212b-4fc7-bae7-89cb2002ebc0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"80b99a1f-7a43-4f2f-b6a0-ac7af935122b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"4c22592a-cffd-453c-985c-711b00087f88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"ef4e380f-8f35-418e-9ee7-6932c1118aa2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"5b057702-0375-4146-a1eb-31a3a5d0a76d","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":133,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"be15c7a8-d9f4-481b-b0f8-e4b0c8325c61","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"307079f0-539e-4f3a-94d0-ca7ee36dfa54","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"1059ae0a-b188-4c90-a5b9-3cd32ff5ecfa","block_type":"box","text":"II-102","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a7e84a65-0ea9-45d7-8b03-9c7bf30ad9e7","block_type":"box","text":"NM1026U-5978945-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"428c8602-f457-4cf2-9bcb-b5cdbdf2ec05","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"37470dc2-6364-4ec3-a774-1aedf1a63b1c","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":134,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"f7258298-bde9-4991-9e3e-d0fe56f93782","block_type":"box","text":"the following amounts:","page_number":134,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"ec745ff8-d389-4369-8839-aceec1302e0b","block_type":"box","text":"$100,000 and above . . . .","page_number":134,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"fe0283e1-5bb4-4005-beb6-5f19cf095351","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"6a04bdcf-a655-48ca-8adb-9d465009641a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"ba293878-7e6b-40a8-92e7-f48312752635","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":134,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"ec9db72c-4595-4523-bf33-b6a0492bf756","block_type":"box","text":"$250,000 and above . . . .","page_number":134,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"100ab79e-e6d2-42d3-aa7b-b63ed7e9c2ea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"b4726281-9d41-420d-a76e-2db216137970","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":134,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"f902f82b-6898-4d63-b87d-7daad187f3ef","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":134,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"21d67d9f-0240-4f99-8847-c1fd3dd5afe3","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"523adb4c-1026-4d29-9218-4e7fb632c783","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":134,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"bf3f6282-8acd-4f83-a2e5-dc2671b703bf","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":134,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"11cac35a-35b5-4a0a-9fc9-558fc150cc86","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"471249cc-590e-4937-8357-fed7735da13d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":134,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"36b21868-1808-4af4-ad08-a913dedd7a56","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"43e41cf1-c90e-4618-932a-e864607c4025","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"c501368a-205d-4295-bf32-c527f01a71f6","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"fa2dbd76-7fd8-42d6-83b0-ec0754d9c3d0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"ba23b16f-f964-443a-9504-d4375c2566ed","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":134,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"a05211a6-9526-4fab-8c3e-ccaa5902d7b0","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":134,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"d60fc9e9-d112-450a-957d-31ecf331228d","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":134,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"3c30f542-7ce0-40d1-a7da-8615b439f99b","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"f2da83d0-f8ca-4902-93c7-a3308c9c3f75","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"3300f65c-bc84-4256-ad83-fe02c9aacb88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":134,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"c9b7d5b3-7d14-485f-8ccc-199f3eaef5a3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"e847ead2-03cf-4f93-bb8d-e33144f44123","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"bb187dae-7202-4a9a-a3e7-79d849639d2c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"d7f6edca-7797-419d-9958-341fdc121148","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"f47bceb4-0309-4c1e-8682-6c567657d019","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":134,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"b0707cc7-1378-4644-b92d-dbdb762dd155","block_type":"box","text":"®","page_number":134,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"c85eedc3-b612-4770-8c9f-fde3ff7822f8","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":134,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"a98d4c9d-571c-4fb2-a14f-c82d44c73508","block_type":"box","text":"®","page_number":134,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"743d31bb-42a7-473e-a02d-362300345390","block_type":"box","text":"Index 2035","page_number":134,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"2f374ab7-63c8-4236-b045-8e7a555b2cf0","block_type":"box","text":"Fund, BlackRock LifePath","page_number":134,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"3b3dfc19-33e7-4a03-9bfb-b184cf455a4f","block_type":"box","text":"®","page_number":134,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"fef818a2-9cf9-4342-8000-bcd0ffa22956","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":134,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"f528709f-3558-498a-9e46-19b6521a4530","block_type":"box","text":"®","page_number":134,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"f6af61e6-16f1-4cce-8b10-c6cfced4b746","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":134,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"279b10bd-71c5-4bc7-a825-cd930cc838d1","block_type":"box","text":"®","page_number":134,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"40b5a38a-1cdd-4ce3-b4d7-bd28257f4207","block_type":"box","text":"Index 2050","page_number":134,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"e281cc33-0b64-48be-8cd7-7b155864b67b","block_type":"box","text":"Fund, BlackRock LifePath","page_number":134,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"847220eb-cc57-4fb7-8733-84b9b439f7d5","block_type":"box","text":"®","page_number":134,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"fcff8fb3-1fd6-4e24-93ff-dbad0688a452","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":134,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"0ae1cc03-8a59-4664-b5a1-b8d655f8b6e7","block_type":"box","text":"®","page_number":134,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"6973b3be-c5d9-4c51-94d0-ba22f5f1cc5b","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":134,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"dc18dfb0-696d-4145-9341-abd649ee775f","block_type":"box","text":"®","page_number":134,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"50a6c940-f4de-42b9-9078-e642d2612863","block_type":"box","text":"Index 2065","page_number":134,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"5d94134d-5f81-47cc-843b-d3e10001c0fe","block_type":"box","text":"Fund, BlackRock LifePath","page_number":134,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"efdc34ed-7ec2-43c0-ba81-cb3963831586","block_type":"box","text":"®","page_number":134,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"b660f3d4-37dd-4aae-bf2d-9c190be1e161","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":134,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"66b710c3-d113-48e9-9fd6-455e903f55ac","block_type":"box","text":"®","page_number":134,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"c3f2cca7-78e9-4ac4-a2ac-90e9012f56ea","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":134,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"eaebaa3b-7afc-4237-afde-c5e21e930606","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"cb42124e-d161-4cdf-9bf9-6361c6635bad","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":134,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"3b6fea64-50f0-4b34-a631-76198a904c2b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":134,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"f9593e56-1e6d-43cb-aef7-93c10424a7ba","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":134,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"69e3f8cb-2d2b-450a-bbf5-c4ccf53c74e5","block_type":"box","text":"SM","page_number":134,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"c846a9bc-241d-4737-8949-446955f8e281","block_type":"box","text":", the placement","page_number":134,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"50b85a9b-2229-4668-945c-08fae008815a","block_type":"box","text":"fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"0f8cc18c-324c-4065-9d1d-f395bfbce2e1","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":134,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"17835276-c615-41bc-be82-5012deca9f62","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":134,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"e17a9f99-c052-4d5c-a5ed-36da8569b756","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":134,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"cb837645-9478-4259-a6f6-dd790631d0f0","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":134,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"3b5d0f85-6796-40cf-b159-461a22067e90","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":134,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"b3709cd5-dbb8-4cb4-9f85-c7290e0105dc","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":134,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"94498806-4a2f-4f4d-aa79-48d9fc0739e9","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":134,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"f318f103-3346-4391-9acc-5f75c1879405","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":134,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"e14b4633-fa15-4b76-a6a2-a9e7385af074","block_type":"box","text":"$1 million).","page_number":134,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"1524eb0a-62e8-4ba4-974b-347d838d9682","block_type":"box","text":"Other.","page_number":134,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"241dc64b-42c2-46da-aca3-ff363fcb1c3a","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":134,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"87d66e70-1996-48cf-aa7d-97170f64b97d","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":134,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"3035051e-4e83-4836-bd65-2fefbd1f60bb","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":134,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"8ce1b03f-9e77-43ac-9ca1-7f5f6fae292f","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":134,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"ea630fee-669b-41f4-ac23-423c8bc5142d","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":134,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"f252451e-1ba1-4c4e-b7e8-39c43dd01f4f","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":134,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"e95a6023-fc82-4771-9a73-cf4a27fa00a3","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":134,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"a00ad8cc-8d95-41cf-a0b2-02b7f3980fa0","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":134,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"6f73b0fa-87b4-49e1-bfc2-79c89f0584e0","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":134,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"037e9d38-80e3-4c5a-9bda-a4f538fc160e","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":134,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"b2eac92f-0209-441b-b599-27b6cf15842c","block_type":"box","text":"II-103","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d5917c1e-f3b6-4b2b-bc50-abc629d95570","block_type":"box","text":"NM1026U-5978945-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2553253e-a1de-49da-b688-451455199fc7","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":135,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"ac558ec7-462f-41bb-ab0a-9c8297659ee0","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":135,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"33da1704-53ae-47a2-9a82-9fbef52c209c","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":135,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"2d55bf07-78e1-4a42-b245-082e5e93ee63","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":135,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"78961700-2a63-414c-ac3f-74b183df1db1","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":135,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"085d7a0e-1826-4161-8340-3c132eb7a444","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":135,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"42332ca3-8145-492e-b7a9-56aa50c4b1ec","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":135,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"19f79377-fa20-479d-8939-97b79faeed22","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":135,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"109bd46b-190e-4438-8452-41406fbde872","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":135,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"026b0136-d875-45c3-aa1c-8930707b4f25","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":135,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"92ae6c24-8402-4765-b668-dd9ba90ad5ab","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":135,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"27c57315-fed2-4b1e-9260-4f181467671d","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":135,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"279fbd9e-e127-414f-ab29-bee46d9b11b8","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":135,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"321c83ac-b72f-4f4b-ae0f-830e02f66ba6","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":135,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"91309abc-10e0-4616-a173-3828654a2b02","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":135,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"c238e28e-e09f-469f-bc84-2fbed42885bc","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":135,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"9cfb5bde-17fc-4201-a48f-c80b3648ba7b","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":135,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"77d8b838-1a0a-4ce1-b390-9dc7a62f4b75","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":135,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"0fb45676-8cd2-42a0-9f47-dcd55d7d693c","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":135,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"c8c051a9-bcd4-4d24-9482-08ac206a5489","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":135,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"e74be0bf-b708-43f2-b918-b6cdec72f3a7","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":135,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"f4282b3a-45d3-43d2-bef2-22227de1013b","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":135,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"3098aa99-d769-4b40-b407-b31c185c9ea1","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":135,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"0c94581a-c070-4006-b5de-6509f533a5ce","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":135,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"3d053b41-6382-48b1-8e79-784798cde3f8","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":135,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"95a8cd4f-d752-46a4-85c6-2cbbbb577e80","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":135,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"55eaf0c7-c95b-4960-b4ea-0c46892397ea","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":135,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"f89265e7-e5a1-4d90-873d-31eac0b7d0ae","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":135,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"c205195a-516b-43ae-888c-9e14c465bf65","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":135,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"5a7228bd-dbf7-4ae2-a748-529676bef884","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":135,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"185c635d-dcdc-428a-8c1d-d86d35f2d45b","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":135,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"60c7cebf-6027-469d-ace9-bd67860e4795","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":135,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"2f6c013f-60dd-44b1-b139-8b991720be4e","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":135,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"0d49c970-63ce-4b25-ac26-4a1d2f5a5147","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":135,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"6469538f-f1fc-4241-87fe-1c91d793c12b","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":135,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"2a7f76ea-5c08-4eca-aa14-f1d8592ae8d7","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":135,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"584e1e63-a15f-4640-9508-8b92c4507b89","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":135,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"c3754c53-99bf-41c4-b77e-9f273e64f34e","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":135,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"ce569247-582e-4d2a-8bf8-3483816b7691","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":135,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"7f10b9ae-3803-4cbc-995e-3b57254de475","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":135,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"c321480e-dc7f-48d7-a557-4d12fa7a0934","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":135,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"5eefc465-9271-4696-b1ca-4ef1cb2dbe65","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":135,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"d830bb37-60f1-4f75-bd27-2b61e4c93423","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":135,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"ffe3f7e9-f75d-49d8-bde2-9c3813f8cedc","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":135,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"dfc41fde-f11f-4097-afc8-b9599816db7e","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":135,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"f4a32a13-fd53-4848-93f4-867c712b0c08","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":135,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"be54e497-688a-46b8-9677-bb501f47c6bb","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":135,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"f115ffb0-5b8e-4976-927f-3f150bf623ed","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":135,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"dcafb56c-9661-43a8-8425-7b0df8f4b374","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":135,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"12034e0c-ff7c-42fc-bb97-d7ccb9dfd144","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":135,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"231d45d6-656e-4f97-b04c-e1f1dabcc8ca","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":135,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"c7574925-3482-493d-a16c-efce4f8e9458","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":135,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"602b7964-caee-468e-8809-386ee510bb71","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":135,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"a56da4a8-45fa-41ad-80df-7dd27eb68818","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":135,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"2a672de9-d1d1-4c2a-99f1-d18f9c140f2e","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":135,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"4d436ff4-9d45-4438-9c19-fd4d40743e34","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":135,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"c202076d-3842-479d-a414-8cff9a3c9624","block_type":"box","text":"II-104","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"be7d1a35-0ce1-4c45-aa51-2fce7a56331f","block_type":"box","text":"NM1026U-5978945-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"582a8aaa-bf86-4e8d-8d5f-d22e4f721416","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":136,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"e06f1d36-2d4f-4311-9426-812d64508b0a","block_type":"box","text":"the absolute discretion of a Fund.","page_number":136,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"56cc97c6-6a2c-45f9-a17b-f1fa929f5442","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":136,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"ce6dc710-3808-4794-9296-44e136de67d3","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":136,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"a97bbcc9-5a4d-46c5-98c2-c79481eb474f","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":136,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"3cbdaa2c-96b2-47cc-a7f0-e777cc6522f2","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":136,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"bac7ead6-27f0-45c9-8e7c-85362bea29b6","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":136,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"28d59e91-8dff-452c-a326-dcb0fe98c3d4","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":136,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"c7adc3ba-80ef-40b4-ada4-5ea28682476e","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":136,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"7776bec9-833d-4bd4-90fa-8532e1f54620","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":136,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"9c1cff4f-4e07-46a7-9896-6cb02a0afac7","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":136,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"9290a102-62c5-4522-96f6-6e575d3e2b39","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":136,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"e5ad9cc0-7dcc-4d13-8ad4-535e12217920","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":136,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"dc6feca2-0404-449e-891c-27aa32f5f83b","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":136,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"5943bb7b-e23e-4ff0-bb16-d3766341770c","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":136,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"54427fbe-a80f-4e63-bacd-daaaec914199","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":136,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"d4410285-ee44-4351-975c-2e1521aa03d9","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":136,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"4e0d1e2d-20f6-487d-abb5-cb385b672e1d","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":136,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"ef00cf0f-d8e7-4dd3-af4c-f5c75e59f778","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":136,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"d47d66a5-27d1-4863-853d-4a219df26bc4","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":136,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"14f65dd3-bfc2-4f29-b908-1bbf7d97ddac","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":136,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"63f7826e-2650-4912-bd1e-54a052a2b55d","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":136,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"2398e7d4-850c-4f8e-a7ca-fb239c2329df","block_type":"box","text":"public or private investment company.","page_number":136,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"4865a3f0-4eed-4baf-8317-6efabd353adc","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":136,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"89361268-c1f8-4086-9e48-0dd9dc41f3da","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":136,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"b2a3d84a-486a-4a8a-9016-c1667b1c8c81","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":136,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"f68d21f7-3143-42b0-8539-f60941bdb0ce","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":136,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"dd5ead33-d78a-458e-a4c4-09524dbf8845","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":136,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"fef34757-7af7-40ca-9c36-25b5d21e3262","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":136,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"faa85c6b-751f-4cf1-985a-8c6e3ef29460","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":136,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"a6b9d781-d191-4d4a-b247-2d6c34ed217e","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":136,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"26226c8d-f232-412e-909a-d60d4a454016","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":136,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"0deeb82f-51a4-43ef-a9f4-b46e74791539","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":136,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"953f79a1-50d4-4d85-86d0-7ae9598c1ad5","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":136,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"fabd00fb-0f8d-40bd-a711-043b00c27ee0","block_type":"box","text":"intermediary associated with the account.","page_number":136,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"6b91f6b3-c3f5-45f2-8b28-90739f585f48","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":136,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"16e4679b-9952-4272-a09f-afca5c666632","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":136,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"1e7b8144-a8ba-4cb5-8560-7752fcb3962f","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":136,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"6b62f8b1-1627-428f-a5d6-0c6d5dd43e84","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":136,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"79e491d1-7903-41dc-9132-d7040c7a631e","block_type":"box","text":"CDSC shares.","page_number":136,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"6b82a2c8-7087-4736-a21a-cf1cd693bfcb","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":136,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"e336d6ef-1955-4e3d-a46e-dedb5cfc9963","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":136,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"2c53cac3-6795-442f-ae31-2c696d42bd78","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":136,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"2b3f1537-a351-4b31-af8c-712c1ffbca21","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":136,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"06ce028a-d25a-4a1d-8dd8-50757fb67cd8","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":136,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"66c7d10c-9d2b-440a-8431-b556d223d591","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":136,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"958ff974-5204-4105-b75f-9f6f17ce93ee","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":136,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"d95c807e-2ee2-46c3-af78-910093fdc241","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":136,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"6bb8bb0a-a56d-4803-be58-59a10ac6566e","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":136,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"c4aa317e-c126-489f-b4bd-50189d114dd6","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":136,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"7cc4a33d-1046-4414-a603-63599e1a1539","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":136,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"f62b6a37-d285-46de-841a-3432388250ce","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":136,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"67c920bc-5cad-4585-a1d5-2cf040cade8f","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":136,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"a86b8f23-49de-46ac-806a-d8516264d064","block_type":"box","text":"II-105","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3989ced6-2579-4d36-914d-0d86d9485d00","block_type":"box","text":"NM1026U-5978945-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5e6c79f9-d81a-49a6-a831-669e557946ec","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":137,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"df324208-3d35-4e77-a1d5-f2ab9b409e03","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":137,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"05f12c4f-4424-43a7-b8b6-dd87f20ea7ce","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":137,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"dde93661-4c23-47cf-9210-38e94bd4797b","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":137,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"dd353399-c1ee-4f48-9752-5f812bd33aa0","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":137,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"1ea89d35-301c-481d-b1b4-70816ddb658b","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":137,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"ddda5d42-9220-4c4a-9a11-8d90725180e3","block_type":"box","text":"Investor A Shares.","page_number":137,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"23ba4d3e-e4a7-4bee-a71a-8dbfdcd90691","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":137,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"535be726-39b4-4f80-a435-fb7aa676f263","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":137,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"c9124f05-c082-4197-a8ab-73d36512278d","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":137,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"b3b39985-70f5-4b51-b674-e91571a21804","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":137,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"332a664f-9c92-4527-979b-97fe58bcf23d","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":137,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"61a98ad4-cbda-4d96-9479-3ac8746d024f","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":137,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"5a42d239-7646-43b7-904d-0f46361edf7c","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":137,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"eea8ac99-2bf7-438e-9352-a85b8a4e90de","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":137,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"7d94fd01-17ee-4f45-a3ff-aa261cbc482d","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":137,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"3770fc7d-2a64-4120-aca8-58663c8f0ff3","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":137,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"0f06ad14-1618-44a9-99bf-a4323b88c385","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":137,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"c829f0a3-9831-4ac2-8bfd-9c20c8dc1826","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":137,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"caf6f1ab-456a-47bf-9c9a-6dce8b4bad90","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":137,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"ccd1bef8-a018-4bae-aa7e-0626bf28729d","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":137,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"628a154f-b851-4fe2-9d2c-54c7167da7f3","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":137,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"6621249e-6c8e-4019-8fb3-c8b75f76c803","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":137,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"8a281f8b-a34e-41ed-985d-8c731f6177db","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":137,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"f01a9fa8-0e14-4d89-bcbc-abe805d584ed","block_type":"box","text":"“Investor C Conversions”).","page_number":137,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"ccf2c0f3-0842-400d-a048-d29da96858c2","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":137,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"de1f597c-8a74-4cf2-81f1-a9bbf246f129","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":137,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"06c6e5da-debf-40f8-9235-213acce7149f","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":137,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"49fc3186-d0b7-4c5c-b5f7-3ae305c7ad85","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":137,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"4acf6c8e-ecd0-4e13-ba07-8d341e42c1af","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":137,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"a8438175-da4c-4aeb-ab29-96146b6e70a7","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":137,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"aea41abc-816f-4335-958c-be29cca65b60","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":137,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"cb96a191-f345-4d1d-bafc-451d9d4bed9b","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":137,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"4382f903-be75-4d2c-a46b-5bc5bf2f52d0","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":137,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"d188cbc6-1659-4085-a830-295289060095","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":137,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"e8f8924b-4ae3-4347-b048-a02da7f0c524","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":137,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"cb86949a-9684-49d1-a721-c8de81f74d8c","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":137,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"666749ff-5765-4e33-ba76-14416c9ac848","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":137,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"ef5364e0-c02a-4bff-8ae2-6a60b1cf5c6c","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":137,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"64d506c0-e50d-43f6-bda0-c496170a2c58","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":137,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"279288e0-7915-483a-84aa-576d1f999b49","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":137,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"373633f7-32b1-4fc2-b8ee-28c9b1002913","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":137,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"a4e02c1a-202a-4baf-91c3-d066de19b661","block_type":"box","text":"redemption.","page_number":137,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"1e4455be-9c9e-4e95-9b39-7fbb0ef6ebd3","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"6509495a-0cc4-408f-baa2-661b984922ba","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":137,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"71bd561c-cbb8-4954-b93a-36507ef23165","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":137,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"5b21e3eb-08c7-4180-b802-b4df656d835b","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":137,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"afe9805a-ab22-4409-9253-719770844d96","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":137,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"f859f003-0390-45d4-a594-acb038cf4642","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":137,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"66b189b2-bd37-460b-ab9f-753a13167232","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":137,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"46e78879-6318-40fb-bc13-2339f439e5f0","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":137,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"4b86a16f-f499-482c-aa3b-a9c3c703fb00","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":137,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"ee17502f-9991-4b71-8053-0a336a7b7796","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":137,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"044dc19a-4215-4cb9-b476-d52831645f48","block_type":"box","text":"II-106","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"041d8738-d25b-4334-8397-46732371b403","block_type":"box","text":"NM1026U-5978945-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9588b374-7b25-4682-9ab1-0d819173695a","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":138,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"5e77f891-5253-437a-b605-9fa70385a0a3","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":138,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"f75070b3-6809-44f3-a783-56d8ae9870c0","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":138,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"453f714c-3a11-4bd5-b521-ff2cff6a2685","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":138,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"66e6f8b7-6a27-464f-9ea4-5385e2a4cfd9","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":138,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"86297e31-19a9-4953-a8bf-fa9f4238ac08","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":138,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"e46f167f-6e66-4381-85fb-2566baa2cc55","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":138,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"b4daf38f-97d0-40b0-9083-ee40da9325c9","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":138,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"54f09d64-8351-4dbc-b230-6071a270f5f0","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":138,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"d261d3fe-aef7-432a-96fc-c752a2ddaf27","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":138,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"1fc98bd8-36e5-4470-8b37-c760c10791a1","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":138,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"f6d7749c-de91-4b2d-ba09-76b32d1a6d25","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"6f952b26-99b9-4919-b423-bf9ac881930f","block_type":"box","text":"Class R Shares","page_number":138,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"1dd9bbf0-02b2-4eb5-97f7-57a043973b26","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":138,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"e74d3ed5-926b-4f88-bcd8-7f5694905d4f","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":138,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"18b62c09-ed7e-4e1b-846b-2bb9a33e193e","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":138,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"01e31186-5d3d-45e6-bc37-4a2d7cc980fc","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":138,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"c234d5c0-d21f-4c9b-81a0-07245cae4937","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":138,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"e295aaea-d758-4bf5-98b8-d05c875fffcb","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":138,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"6951fafd-b3a5-4f22-8b86-6a6840e6d8c3","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":138,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"1c30cf19-b656-41f4-94a1-cd9c41b6030e","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":138,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"19c5508a-0a1f-4d49-8c79-f15a4ebc88c5","block_type":"box","text":"Class K Shares","page_number":138,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"ce4e2425-9914-4899-b792-081ae8afa6bf","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":138,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"87d2db9c-fc4a-423b-ab87-ff5851c9cb03","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":138,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"a825224a-906e-441f-b1dd-46d2751c33f0","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":138,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"6a4aa0bd-0973-4b29-b1e0-c80b2247ebce","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":138,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"3747d1d5-d223-4ee0-a8f6-0c7d22414bb2","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":138,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"fb425f2f-625a-46c2-a2cc-5121a9ec469b","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":138,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"619fd843-6775-4816-8864-2fde0f3dab1c","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":138,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"da757a27-81bd-41cd-a39b-0b2013d8294c","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":138,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"7ce1e832-a0a7-4c73-aa04-95854bab076c","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":138,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"592f8708-975d-4f65-a375-07c9f6eec25f","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":138,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"24b5b8f9-e16e-4610-a550-23918ab22c57","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":138,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"7ffcc2bc-8680-4e33-8e42-8574d2c43004","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":138,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"4fa4dae0-5c88-4d08-87f3-682a19792c67","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":138,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"42a30a17-366c-4b23-af1e-577eaeb5858a","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":138,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"621de8d0-4307-41d8-b9bc-0fe0815d364f","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":138,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"0f8e2b2b-cc17-49c1-9f95-b632ce0ac171","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":138,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"e4777554-706b-47b3-847d-d9a4a807218d","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":138,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"0d1fc1b2-948e-4c7e-8755-b5ec47883810","block_type":"box","text":"distribution and marketing agreement.","page_number":138,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"55b05959-59cd-47bb-8811-935f550b7ee4","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":138,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"a4606e29-92a7-42af-99a6-78f418991598","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":138,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"61fa48c9-7d60-4a6c-925b-3bb86fa39a48","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":138,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"bdd9af2a-fc7a-4f5e-86f9-623675a0e16d","block_type":"box","text":"Class G Shares","page_number":138,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"c5266512-588f-4183-8033-513f54c76251","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":138,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"5cc48c5a-4807-46a6-8ad7-a0cbd4ef6bff","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":138,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"c74feba0-e4ae-4cd8-9fd1-4acf423d5ff2","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":138,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"d4155098-0fb4-45f5-a54d-1e7f80d331b6","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":138,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"ba7b18c5-0351-4723-b9bf-837e440239c5","block_type":"box","text":"eligibility requirements.","page_number":138,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"57c97dcf-2052-4a5a-ba69-99c3ef6b42a4","block_type":"box","text":"II-107","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"26856bf9-7388-4915-b310-84d7b561b1db","block_type":"box","text":"NM1026U-5978945-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3934ba48-543a-46bc-a0f8-6c6adb7a7e90","block_type":"box","text":"Service Shares","page_number":139,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"996c0488-cd16-4a9d-a0a9-57aa8ebd7975","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":139,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"b5052c70-2ade-4688-9a39-956183a8da9d","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":139,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"deb29157-92af-4b16-8adb-3596846af5d8","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":139,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"4905a933-f2fd-40bb-a8bb-6150da697ebe","block_type":"box","text":"®","page_number":139,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"adecfcc5-6cd0-44cd-9238-256efc06f79d","block_type":"box","text":"Fund in 1996; and","page_number":139,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"7be66dce-5bdc-4beb-8f11-e65f6e1f5128","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":139,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"72aedd76-8d95-4fdd-918e-d5246511585c","block_type":"box","text":"SM","page_number":139,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"f59a10d5-0398-4337-a1fa-3155dbe93625","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":139,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"89399ab7-e124-418c-bded-ce0a80c1c876","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":139,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"dd674105-b32f-4f0a-bb5c-e3b4123d1cf1","block_type":"box","text":"BlackRock Shares","page_number":139,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"deceb03e-2739-4de7-9bb1-ff3e2b0f2764","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":139,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"92f02683-532c-4a7e-bf5b-946988405027","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":139,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"3312118b-434e-4b02-8703-258647cd8fd4","block_type":"box","text":"fee-based programs.","page_number":139,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"b93b0157-b545-4fea-bba6-cfb95c83a247","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":139,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"b2265a15-2a33-40c5-8d0d-51f58617e236","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":139,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"b8a5c794-1e89-4880-8e82-e4cc63a02996","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":139,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"dfc31294-8201-4f30-98c3-74a774bb6974","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":139,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"966d00b9-0dfa-4e8d-9f9b-70910e0419e2","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":139,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"58e9d9a8-5d82-4d08-9092-5976d3f80031","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":139,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"f9cac8e6-f598-4ff7-beee-3eb33131978e","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":139,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"406ba04a-e4d1-4fda-916c-f9c0e2ef54a5","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":139,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"b18e98fc-bc31-4dbd-9b6f-9edfe014072b","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":139,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"2b183221-d506-4e65-a1fa-4e6a822f6790","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":139,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"27d94e3a-5ca9-47cc-af34-bc45b3713a4d","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":139,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"e6d6e5dd-8c98-48d5-9234-d8b3a9235c44","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":139,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"de304500-7441-44b1-baeb-499a78afa538","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":139,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"1596bf10-fd6d-4f38-ac0c-4c16a116d83e","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":139,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"e33b7503-7e5d-40fb-b6c8-a6d009c803ec","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":139,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"616190e9-30b6-4961-b283-5fe21505cd0c","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":139,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"27d3e70e-5859-4f73-adb6-1c8896b10a68","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":139,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ebdaa2df-d7fe-45fd-8b4f-c02243c005af","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":139,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"4b1ea3c8-5bd0-4eda-872b-898ba86837fb","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":139,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"cd2c6e8a-c54a-4c66-a442-ac1bceb97cc4","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":139,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"99c1f9dc-d269-4299-a5dc-c3d1405c533d","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":139,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"d333a054-f00e-49d1-8ea1-abbc32d570ae","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":139,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"dbe8d151-3cdd-461c-917f-fca891fbd75b","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":139,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"0af5f37d-9719-46da-aa57-997fd67b5e94","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":139,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"330a61e4-6196-4a46-aec9-bb77b5059096","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":139,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"ed005874-fb23-43ee-93a6-34cfc0d8ad31","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":139,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"435e68f1-b1fc-4c86-a723-99a33f0a9064","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":139,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"225fa50c-1c26-4f6d-8c5a-6e2763874bb2","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":139,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"eebd0ec6-c0de-4b53-821e-5f77ec1793e2","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":139,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"b1056949-cdec-41ff-bf3a-947538c68508","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":139,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"be230a7a-589a-4ca5-80cb-8511c1dc7475","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":139,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"3633ff10-903e-46d3-9e41-e13147be70cc","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":139,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"759b265b-4e4e-49d9-9052-94670a103b23","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":139,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"812a6daa-9952-485a-a939-9ce3be92b889","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":139,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"589b4383-3330-4152-b142-e9106d642123","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":139,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"ed0fa774-91d0-432c-925e-2a88d1f3b7d6","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":139,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"9d51c9d8-3580-4b32-b463-b1d58144f37c","block_type":"box","text":"compensation for selling different classes of shares.","page_number":139,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"36ee48cc-327f-4b4e-b0a2-695d75e2fb99","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":139,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"5c914a01-55d3-4a46-9ffc-f306e814a36d","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":139,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"8c7a0bcd-c034-4f50-aa9a-f510abb0997e","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":139,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"484c6c86-3f8a-4386-bfac-7257e611f21b","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":139,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"edc0b2bd-bf77-4bff-acc5-604b5d390971","block_type":"box","text":"II-108","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"54bd9f67-a4bb-4ad2-9438-7e977bf6876f","block_type":"box","text":"NM1026U-5978945-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"89adf8ee-635b-49c5-b41c-30b0e3cc6b61","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":140,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"ab37cb65-7c33-443e-a1ae-1db7bd7a8df1","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":140,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"236f855a-3bf5-448a-b5f1-2ab413d68c96","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":140,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"c48b98d7-77db-411a-8ee2-af1b491312cd","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":140,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"a6f7ecd4-ee79-4582-b051-2046f31e1970","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":140,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"71af4754-4001-4c3e-8c97-7a022566aed1","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":140,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"4c8611ec-f204-4716-92e0-eefb611ee2a7","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":140,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"533eaadf-623e-47a8-9ee2-c7e495e77ee4","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":140,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"392ee9c2-6fe3-4ef5-9fd1-b775395e9240","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":140,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"99530824-5b36-45d4-be6a-63e50732c830","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":140,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"d85ba14d-dc6a-4b48-8cbd-7ba2b975e4f0","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":140,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"585a726e-8d87-4f8d-90fa-dcf5ce828e0a","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":140,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"9d3c5e97-1cdf-443e-b03c-6b490acb9183","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":140,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"bb0a6683-ac6e-4f3f-9ce2-0a4c42b6b5d3","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":140,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"717d38e9-37f5-46bb-8851-911d49b4e415","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":140,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"668987b5-0557-44d6-b3a0-9f18125729c8","block_type":"box","text":"easily accessible place.","page_number":140,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"c2c5d352-3d34-4b16-ac40-42d5e806f449","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":140,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"426b8462-78d0-4bd4-b7a3-db84e5e196e4","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":140,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"4611bfe8-d00a-4392-bd0b-ad54a382a5d0","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":140,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"64ac0906-974c-4c2d-965d-95e68f73c9c8","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":140,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"382dd25e-5bae-4818-9b7f-37ac996ef935","block_type":"box","text":"fiscal year.","page_number":140,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"1d8d81ea-f32f-4a01-ab26-0e3bde837fdc","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":140,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"3d88e95a-84f9-4a63-9879-08f264f62147","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":140,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"6de4cae5-c461-4c75-bd4e-db5dbb5afe98","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":140,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"11608b20-6dc9-4897-9ad4-7cae9f5d2dbf","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":140,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"3c3853a2-e4cb-4e03-bfa1-7275e2949563","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":140,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"3f3ddfc9-da63-42b1-a60d-32f761933250","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":140,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"4fe09b1d-1ec4-49a0-a143-3a38f5eefad2","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":140,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"6f44318c-03e5-45b9-bef8-0f3e33b877cf","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":140,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"459ce38b-ff37-48d8-b32e-3c1f267d1f4a","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":140,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"bf06d38c-e96d-4b26-86dd-59e2e94858a6","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":140,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"7d0f97ec-c2ba-4099-bd5e-1d74fa36bb5d","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":140,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"ca29a3a2-efb8-4042-b7ab-d2141efc2271","block_type":"box","text":"and Class R Shares of your Fund.","page_number":140,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"4310dd2b-6a44-421e-86a0-e5f86704cf65","block_type":"box","text":"Other Payments by the Fund","page_number":140,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"f2bf1028-01c1-4d6c-b477-758a50db6ec1","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":140,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"1b3649c0-349f-4349-a486-36cdc558dc37","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":140,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"1b7e3674-fb0c-4c51-a84f-12e675c9b7b9","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":140,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"81e5193a-4dc8-4bb9-a4c5-77e7640b9aeb","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":140,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"34afb332-0d94-4db1-a43b-19cf903cd152","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":140,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"3b632938-7499-481b-8fd7-3aa7fabada8f","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":140,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"aeb8cd04-8b7d-4003-aa74-85e049053ebc","block_type":"box","text":"of these payments may be substantial.","page_number":140,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"d5371259-b06e-4f8a-b24a-415d8a4d3493","block_type":"box","text":"Additional Payments by BlackRock","page_number":140,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"b85966dc-bbcb-4c12-8f87-0e13cb32697c","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":140,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"04a45bfc-183d-48a9-9014-70145e4daa1e","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":140,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"4256e9f2-7579-42b7-95b5-545dca6ad378","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":140,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"2e4918ca-1658-4123-9c6a-feaf68f83ee2","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":140,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"83acfdd8-8179-4095-a546-bed7640ee1f6","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":140,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"65454721-3965-482c-9a8d-27836e35027e","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":140,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"2523ba3f-7c71-4a32-8266-9eaae52226c8","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":140,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"b1015630-6442-4624-a998-0a317427d066","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":140,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"ca2d7281-3bc2-4836-a3fb-c7db7514c607","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":140,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"a1e960f0-c4e7-461e-8c52-f6d9428edac2","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":140,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"dd999125-02e5-4e61-bc93-e8267744415e","block_type":"box","text":"II-109","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"324f8219-a384-4735-b32e-5642fffb5324","block_type":"box","text":"NM1026U-5978945-140/232","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0410596f-d256-4eee-9f17-fc5bb9bd3119","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":141,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"684970a5-b6b2-4c1b-81e9-2abd8d156e24","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":141,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"329f8158-46ad-44e6-97a4-ba1ab23f6227","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":141,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"172a9fc3-8dc2-4032-bdbe-8d38702b7d58","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":141,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"00bc208f-6aaf-4483-8aef-c27390d33d0b","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":141,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"ef2223b8-486d-4f0a-bf05-a0d970234340","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":141,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"31607238-699a-442c-b214-93065847b93e","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":141,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"5735ce7c-9cf4-43f7-8521-50cc5cd11a82","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":141,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"e0874037-f88b-409b-a7be-771fb4b34d8d","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":141,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"fc9f678b-a1a9-4ec6-b3b5-4be3258668d5","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":141,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"43288b9d-346f-4ad3-b33c-1a37d31c1b7d","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":141,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"f0c13980-469b-4b32-aed7-60c8d92dc756","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":141,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"7ee11b42-d395-405c-bd6d-2c70fdf8bba5","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":141,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"e71a42bf-77b1-4bf8-ac92-05f42a8c1be8","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":141,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"02ad1207-60b2-4962-be19-b89ef04f74af","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":141,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"312a9fc3-48f1-417e-adba-22788cfc0a7f","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":141,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"025b1e04-8c13-46f4-b758-0f8dc5071949","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":141,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"1aca9982-4e81-4f10-9aec-e23f10846ea5","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":141,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"13743ab2-763b-455f-8506-b51acc279687","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":141,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"1ca75b5a-a70f-4762-a177-45d119f64563","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":141,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"0343f0ee-ca9f-4c76-a4d0-78b98f2fccb2","block_type":"box","text":"Funds.","page_number":141,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"bc5bd76a-e9ee-4683-b030-e7ebb1c1edf0","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":141,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"b0582e61-19d9-4b6f-927b-2048f1fd1d54","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":141,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"db67bee8-e61e-4e6d-bab2-db54710b997c","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":141,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"24ba3680-61e4-4e71-a8a6-72255f69824f","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":141,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"4b6730b9-6255-4176-bfb9-16b6ff23bc9e","block_type":"box","text":"B. Shareholder Services","page_number":141,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"691a282c-3b3e-484e-ae56-5e44521ee26a","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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This list may change over time,","page_number":141,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"1844410f-4182-4e12-ac49-ff4a1dc35d1b","block_type":"box","text":"II-110","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"302421cd-ade6-406f-8ebf-a3e49f6bc3e9","block_type":"box","text":"NM1026U-5978945-141/232","page_number":141,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e028eeae-e0cc-4e09-8e20-cbe66ee79aa8","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":142,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"caae67bf-eb12-4646-ac62-1833baab0055","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":142,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"fbf07561-322f-4060-9791-18bd98e37c12","block_type":"box","text":"payments and 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BlackRock","page_number":145,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"7fbcf711-7f09-4853-a96f-f2d3e34ed2a7","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":145,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"0ba96f1c-8b69-4ee3-9190-32a55f711f30","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":145,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"bff7e5a0-9e4e-4df4-a7b6-06464aa31781","block_type":"box","text":"traded products.","page_number":145,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"357166a1-d0cf-4497-8345-8e5bf477db4f","block_type":"box","text":"F. Conflicts","page_number":145,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"a1d81e10-3873-47e8-967c-3d36d07bde25","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":145,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"86107a47-a27e-48dc-89eb-58663a592a66","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":145,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"d8812f25-c753-461f-991e-369506f6f998","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":145,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"e89f3be2-fa82-4c3e-8601-203afb02621e","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":145,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"3501876d-3b44-4166-8c42-c2a2b625c70b","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":145,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"b720e282-acb5-433e-a1e1-a535a07620a3","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":145,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"bc3236d7-856d-4649-b887-0cec7fd8b54c","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":145,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"94449978-3484-4056-9571-6aa5f315127a","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":145,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"777ba833-7a23-41ff-a6df-7ddf7aac28e6","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":145,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"6e420352-cf0c-4a64-9b21-dd777fac0706","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":145,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"8547958f-5d68-4f73-b6ed-94a0e45c8d92","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":145,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"45b76641-6c33-483d-b9e6-fc6e536d22fc","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":145,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"7060d737-62ed-4e15-8b4c-9a69f13d727b","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":145,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"8e88e24b-edf3-49a4-a296-9ee71f9c9059","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":145,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"27ff277b-8c0b-444f-a241-a6abcb41408a","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":145,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"f33e26b9-7790-43ca-876a-3849430e180f","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":145,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"c81cf88e-d2b1-4ca7-ad7f-0207deda61dd","block_type":"box","text":"appropriate.","page_number":145,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"77fdf908-8125-4e50-bd7c-3482e017594a","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":145,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"8fa9b4e6-8178-4431-b69c-893c26958cd4","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":145,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"c6924827-6a22-4a10-89ca-a8e8649bb25e","block_type":"box","text":"described above.","page_number":145,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"1c98131b-2d69-41c0-a37d-bc6fe94c1382","block_type":"box","text":"REDEMPTION OF SHARES","page_number":145,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"cf7d438b-36c9-4a37-b1a4-bb5aee2d7797","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":145,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"d059e0af-c163-463a-8dad-2da6bccdfe58","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":145,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"01b1e707-ef8e-4442-8f52-bd2b0347e0f4","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":145,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"2111f0ff-cdc4-408f-a331-24bff429cf26","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":145,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"5c3ea38b-057c-46e3-98a7-c6c518594d35","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":145,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"8ce235a4-8132-47cd-b64a-44ce6f851a58","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":145,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"801772a8-ca70-4b9b-a024-fd696fb66317","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":145,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"ee9921a2-7429-4bed-99fc-468425fd6b69","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":145,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"c2e684e4-bd87-4918-9757-0bfa0733d177","block_type":"box","text":"II-114","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"66223c8a-d632-4b5c-bd01-74bf453f47ac","block_type":"box","text":"NM1026U-5978945-145/232","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5defd459-2681-44db-974f-ff79cb60d608","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":146,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"498e7e62-a922-4330-88f0-a12f496ffaa1","block_type":"box","text":"for any shareholder of the Fund.","page_number":146,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"1b331438-09ba-4022-9011-313850963c54","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":146,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"dd9bfa23-d9de-4fcb-993c-1c90cf023e8a","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":146,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"5eb74fd9-f6b1-427c-a97f-63cfab0b8c83","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":146,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"7f473290-b756-46e6-890b-4515473f9c59","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":146,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"031be875-309c-4b23-8bf4-f4189669687a","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":146,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"3b3081ba-13ef-4caf-99de-56356fb4b5a3","block_type":"box","text":"redemption.","page_number":146,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"7784ce2c-ec03-4bf2-b7d6-0d044e616202","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":146,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"52f1ebce-327a-4229-a496-be1aade8a37b","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":146,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"ccb3ab26-2aff-4cca-a608-3a99ac57d611","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":146,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"5eaa04ce-7850-4270-b30a-465363bbbafa","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":146,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"783a530c-b2ae-446f-9dc8-7f43e66e851a","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":146,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"d6967e8e-9b2d-4ba1-93fd-5dc9cd6ed923","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":146,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"bef6da13-4de5-468b-92a7-1979a72f50bc","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":146,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"7c7e699d-1954-4362-a32d-7265abca5c29","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":146,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"f20da144-5c24-4b14-844a-33b46903705b","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":146,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"46766ad0-9b5a-4b99-93b1-2039caba1d84","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":146,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"4a31e9d3-de4c-4478-895f-f29654b8cf26","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":146,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"9e12d62d-da10-4851-94fb-6b9bd3125d24","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":146,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"5b524235-9003-447e-bf45-71897b0499dc","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":146,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"11a97023-88f9-474f-bdbe-90dae0668a7f","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":146,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"103d972b-8418-4191-ab30-9b9b4f2f92d5","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":146,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"c6857713-ebbd-403d-a09a-182895963ad4","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":146,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"7b90f11f-c140-4a7c-ad57-1232fba3330d","block_type":"box","text":"Redemption","page_number":146,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"6cb22322-13f9-44e8-bbbc-b3b3b63b59e7","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":146,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"4999d638-7116-41aa-a745-2495929ba1dc","block_type":"box","text":"Redeem by Telephone:","page_number":146,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"24f1f494-6317-4022-97c3-779bde73ff15","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":146,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"c9b38691-6003-49a1-b8ab-fccfefc7be8e","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":146,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"4a3d6855-1004-4f96-9a32-01052dae6306","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":146,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"d79d04c3-f215-4e56-a6e7-cae952b64f95","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":146,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"bc951f35-0493-4cb5-88bc-ffaac7e66bbd","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":146,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"123abbad-517b-4581-91d6-8bdc2af37dd5","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":146,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"d3684c1b-35e5-4820-9c38-efde7e21e3ba","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":146,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"7c6b1a90-d378-4158-bb15-d54500c99c83","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":146,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"dcebece5-c57f-41e9-858e-51c82d578ff5","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":146,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"555be634-eaf0-49f8-80d5-7351da2dcd57","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":146,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"5d2d0f89-8705-45c1-a2f4-110d3cf1b5eb","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":146,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"187c9082-36f3-46ec-9a36-f85a90534867","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":146,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"9f840ec3-1ffd-4605-8214-b02d48c79d27","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":146,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"a771c3b6-8565-4794-8557-10a0dd4b5954","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":146,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"0fe6649f-00ce-4249-9780-2d2d79954e19","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":146,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"dcd38476-67f5-4427-98ad-0ace4743eabf","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":146,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"2fd4c760-4e04-4be0-a23d-021287ac4af2","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":146,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"5f12343a-1c8a-4850-b69c-cb1b91856ad9","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":146,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"9dfaf4be-7da6-4e70-9a42-7675dfb45886","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":146,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"05b190ef-d055-42c1-a45d-3a6c1751e985","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":146,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"2514817f-9d8c-455a-8ff1-ef2aea914c04","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":146,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"7d334503-105e-456d-b3ad-c59ebc77b2d5","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":146,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"70f76068-410f-45ac-812e-dd42f41757fa","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":146,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"d56daebe-12a7-4153-ac6a-dd8754e55d58","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":146,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"e8e9248d-f094-4303-8eef-13d8eb0ca0e3","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":146,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"40b77f6c-ae5f-4ea5-b59b-3c880adbb39c","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":146,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"935d888f-cee9-45a0-b6e4-81d0e0610754","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":146,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"00db7bf7-0b10-4676-b43b-8ebf04c2de03","block_type":"box","text":"II-115","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"efbc969c-ff7a-4a7f-93d5-d57a8d2a3f08","block_type":"box","text":"NM1026U-5978945-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5b478e6b-9a1a-4f6f-95b2-e70189a4e070","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":147,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"c7b61520-0c4c-4d11-8b02-f9c9651e703f","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":147,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"be963dd5-1d59-4042-9d67-42a55fb5994a","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":147,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"53fcaab4-7a77-43c4-b63c-9fee2f1f00e7","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":147,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"57465c51-bc84-4ce0-a774-34ba03f1b504","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":147,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"b3b9b5b5-3f5e-4dff-a4dc-9fc53b92270a","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":147,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"f017f958-5fce-47aa-888e-ab05eaa737e1","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":147,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"cc7068ef-ab18-444c-ae94-9018326a64a0","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":147,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"cde0e001-e8cb-413c-92c2-a1d7e5130ed4","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":147,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"7889d834-ca56-4aac-9c12-5cfb8253856b","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":147,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"8fce32cb-2d4c-4d37-8311-14018b64dba4","block_type":"box","text":"Redeem by VRU:","page_number":147,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"b6fd0aca-e838-4ad0-a74a-2457e9070b01","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":147,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"5487b635-ce78-46b9-8fec-ac9e90469399","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":147,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"0ae93c5a-3bf6-4e58-a88c-6ac1776c9e86","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":147,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"34359bf7-b662-46dd-b06a-42f8031bd40a","block_type":"box","text":"Redeem by Internet:","page_number":147,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"cecba030-0be1-43b4-a8d0-8ece507871b4","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":147,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"e3f47c05-dced-443d-8b47-18b8bb8e5c2e","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":147,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"8c68ea42-616a-4121-a204-94462bf36c9e","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":147,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"98dd6dfb-5a3e-476d-8b96-8da7cd6b5837","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":147,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"b8af6f4b-b23b-4460-8260-d2b1ee637975","block_type":"box","text":"institutional investors.","page_number":147,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"720d3fa0-2463-491f-82de-978d0f2e1221","block_type":"box","text":"Redeem in Writing:","page_number":147,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"5d8f3bb7-7593-4cbb-842a-e80081b33dc1","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":147,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"4f5577b4-4e85-4fe3-b114-40322981e803","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":147,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"ffc233e4-15de-4ce2-a6db-5dc74544d402","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":147,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"edc7374e-8371-4716-968d-15c3c3068683","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":147,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"0083297c-5ec5-481e-9016-b60b98f24dc8","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":147,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"34b72929-8b03-432f-a939-61c8c9a9e322","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":147,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"31e94028-e841-44fa-99ce-31169578ae17","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":147,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"eb27fd77-c364-432c-bc80-b82f6f285d86","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":147,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"782baf0a-f164-4a3f-8a51-550abf09d3b9","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":147,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"87be0af8-13e2-4d7b-8186-5db6037bb856","block_type":"box","text":"or wire to the bank account of record.","page_number":147,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"515ec36f-9453-4d6f-83be-45ef191eff26","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":147,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"6c21d399-447d-496d-a0da-39ce9e607103","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":147,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"ff678fc3-4c72-43f7-8b09-89d7fdd6df3b","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":147,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"c5db9592-cb00-42d5-905d-64ca69e20802","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":147,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"772dff48-0209-4128-ae89-b5f58e25c3f2","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":147,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"53ba8a65-9cb9-496e-bf3a-baaac171bf46","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":147,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"491a4eb5-732b-4522-8e2e-cdd0753bb97e","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":147,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"ac99245c-dd9f-4601-925b-586a8c9b56e0","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":147,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"b1ff8418-27fb-49e5-8ba9-bd32c65b7118","block_type":"box","text":"redeemed by the Fund.","page_number":147,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"c52ebf85-ff2a-48a5-9ba5-8b2ec1c79c54","block_type":"box","text":"Note on Low Balance Accounts.","page_number":147,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"2867d78d-fdb4-4d26-87b9-5375a760ae32","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":147,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"a52bbccf-181b-49d7-8140-ac76cbf469c9","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":147,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"493f5134-9dfa-42af-939d-903c11b5762b","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":147,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"ba616019-b4f2-473e-a85d-cdeb6e245963","block_type":"box","text":"for any reason, including market fluctuation.","page_number":147,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"ffe7c138-c4c4-4fe2-a8d5-7234ecb37eaa","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":147,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"b0fb2baf-59d4-43e3-879a-12bc4dddb8f2","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":147,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"95d05437-3ca1-4b9f-90cd-5ca214ddddcd","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":147,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"2b4970a1-3e88-4d7a-b859-f0ef63459e4f","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":147,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"5ea221c1-3825-4f42-9676-6b1ba8a862c9","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":147,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"455ff629-7d84-4195-9e8f-a63c6335bf70","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":147,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"b97fe880-a67f-47d5-964a-37bc4868676b","block_type":"box","text":"Redemptions in Kind:","page_number":147,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"41675f56-d55e-4f1c-b5a5-defdba128e07","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":147,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"f5decb5b-01c9-453c-9cbb-9160eb3069ed","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":147,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"a8d68b76-5af1-4875-8a25-1d85caf08801","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":147,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"85a52a52-d638-40b1-b9af-b75501cc070d","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":147,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"fd524840-4967-440b-a8d5-bc4fa2691a8b","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":147,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"7e6fd6c9-46ca-4b54-9fa2-3be4c50f23ac","block_type":"box","text":"II-116","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b2dc7d9-2882-40ad-a307-d9aafff44717","block_type":"box","text":"NM1026U-5978945-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4741051c-6b1e-4570-b122-e096c3b50a33","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":148,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"9b811b95-52ff-43ca-a49b-4de674250333","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":148,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"219eaeb0-62bb-487d-98fa-687ccd7b68e3","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":148,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"d3a9041c-26dd-42f6-9b08-1fe0a5429c16","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":148,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"52cbcfca-d0a9-4270-84df-764fec8a7a7d","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":148,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"1e875817-174c-47d1-9c84-e04b5f642ce0","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":148,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"06f6e180-8880-4599-ae65-3a02b06b81a2","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":148,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"02affcf2-815b-4113-ba45-03afd589952e","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":148,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"efab47f6-5b35-40bb-a008-7e4b3b56021a","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":148,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"6faee23e-db86-46fe-8734-e358499f59c4","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":148,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"a22dd394-fd64-4126-b994-c1b3fb422a9a","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":148,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"dee0bb16-a5ea-43ab-83c8-46ee717e339e","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":148,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"e74a20ef-b424-450b-a471-e8ef0d96b8f6","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":148,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"63e12737-76b4-42a8-9f19-ced1b1bde2d3","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":148,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"24611314-cc45-41d5-a384-ff69831fe6ca","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":148,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"6aa2224b-99b0-4f1f-b136-e32a77205c1d","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":148,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"548740d8-a42c-4b1c-bffd-71cf10bb786b","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":148,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"a271e807-b5a7-46e8-a107-56caa416fe7f","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":148,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"92cbedd7-fba7-4d3f-bab1-deb3a31912cd","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":148,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"7f367d2c-9a2c-4962-b679-386d0129c0aa","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":148,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"cdd06334-ee38-40af-bd49-06a4b29c3730","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":148,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"53fcfb97-293b-493f-b4d1-47a48e027092","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":148,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"e9249f0a-f2ee-424a-bfd0-5bd881cd4860","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":148,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"df04fbaa-4fcf-46b2-a1c4-c63398a7ee0c","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":148,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"d113c18a-fdbc-4f87-99f2-f014af695661","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":148,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"da89b601-5a23-4fc8-9418-ae2fc5f3e627","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":148,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"5573a98e-57a3-4efa-b820-f7439fd6e8c3","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":148,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"32bdab51-a82e-4364-b734-c8118df6ba44","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":148,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"c9dc1d69-882f-4039-815e-43fba5cf578b","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":148,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"03b7e5be-4262-48fb-8c85-308a0c3f8d70","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":148,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"932abc8e-e32b-4bbd-8b06-559a90b12822","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":148,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"8b57e5c9-c82c-4cf5-a273-f4be7118bcba","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":148,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"a31c187e-ff3e-4ef8-864c-8c59c7513a97","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":148,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"4910b691-0f09-4902-8f92-d06eb6d72e4f","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":148,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"029d7345-cdce-42ee-8d3c-3934fb595c08","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":148,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"b6a5e81d-aace-4014-aed2-46a30ced72c7","block_type":"box","text":"Repurchase","page_number":148,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"6fae21ba-f4cf-40dc-8dd9-af8113355f48","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":148,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"e85aa15c-2a77-4d33-9505-a52e3716f119","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":148,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"4d39a562-237a-4fe1-bb57-c42c2aca9998","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":148,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"78819e2c-6362-42d3-b02e-e2b317a89b36","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":148,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"16d034a0-c1e2-4fcb-ac95-0e180b866c6a","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":148,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"c7e7ca34-ced2-4a6f-bb54-d57e70c5e476","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":148,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"4a2e5439-10c4-4303-96d7-f2b5f401bd56","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":148,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"3877fd2a-ba41-4ee1-9b6b-f3972aa0142d","block_type":"box","text":"next business day.","page_number":148,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"e642b02e-1d4e-4cb8-9039-4ac118aef2f7","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":148,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"5dfc45ed-3d4a-45cc-a4cd-92cacf029a4f","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":148,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"fcc92bfb-4b4f-463f-8408-15e238f27dfb","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":148,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"87259bd1-fa3c-4e26-89e5-7a0af8ea118b","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":148,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"c291ea76-a820-4161-8c09-4ccd973e8f01","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":148,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"673e3118-327b-450e-ae07-d4e64cdff902","block_type":"box","text":"redeem shares as set out above.","page_number":148,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"5d0de3cd-5347-4add-a0f2-ab3c1e724620","block_type":"box","text":"II-117","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"56783a82-6c13-4c5d-ae54-6ed0ae8fc78f","block_type":"box","text":"NM1026U-5978945-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0b8bd6c5-a784-4802-acd1-2468bff3e763","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":149,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"03869938-8ec9-452f-a530-3dbd9c8ea47a","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":149,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"6cdfcd4c-6c84-4b83-8896-47e5e87978aa","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":149,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"fe04e507-0304-484f-87ba-4e64f2a3f8f3","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":149,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"21ca19e9-1da1-4270-b17d-af321126951c","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":149,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"bd0ba3a9-3951-4ec6-9ffb-a22335e796ac","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":149,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"eba4a6b4-fcbd-4c4e-8ef1-055c94bc07aa","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":149,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"50a9a28e-7c6c-4509-b7df-8a33dfcc1d54","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":149,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"ba4400b6-7aa4-4f9a-9ad7-69976ee4a872","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":149,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"da941b70-6c4e-47c9-881f-1d8e961ca446","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":149,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"0971e69d-4fc1-42ba-a389-10ebf65411f8","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":149,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"41571e81-9229-4ff5-a4c2-25e18863a592","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":149,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"9e4f51be-ab1c-4216-be45-7c05e507a3d9","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":149,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"d3d6ef54-0055-43d9-a777-5ed6dedaf703","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":149,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"7a732ce1-84cf-484a-835c-a00f5272d070","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":149,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"aa72afc0-1753-456d-8bc3-7bd24fbfe031","block_type":"box","text":"Investment Account","page_number":149,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"a2e40a6e-b364-4d79-a799-bd1884223119","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":149,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"9d7ab5f9-0547-4f67-a299-3574281a3745","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":149,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"469fd5a4-30f3-4f96-adce-7f82286c2e13","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":149,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"48dc425c-3f23-4b35-8ab0-2b4f0c681dbd","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":149,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"6aa43dd8-42fd-435c-ab62-f5a059bcafc5","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":149,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"6f78a804-2f26-4b52-a35e-03333cba5b18","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":149,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"5a1563af-55f5-4a7d-a3d8-f232e03450d3","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":149,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"3ddd6244-4de0-4502-a826-fb93add18f08","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":149,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"006202fd-a579-4205-8225-3412d9154464","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":149,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"011cc01b-d95e-47e2-9ff0-95240d4b9382","block_type":"box","text":"automatically at the Transfer Agent.","page_number":149,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"d1fc47c1-971d-45c1-b44e-026ea9f9353d","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":149,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"70e21342-2a99-4169-808e-9ca21cfb1e69","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":149,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"0d9a46f3-de6e-45b9-a436-8f75ad969725","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":149,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"e87ffb86-8584-4e35-ba29-6934d60fee63","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":149,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"ec412d46-9cb8-4e05-8061-f79786541648","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":149,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"c2ab7a88-251c-4e12-80d6-981282711c4e","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":149,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"529dda0f-867d-4eff-a041-653b85425856","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":149,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"e905479e-43a2-48a7-bf79-163eee680a75","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":149,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"f1c864d3-7441-459d-8ced-161b145726af","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":149,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"dc48b9c5-622c-4c38-aa57-828ad1627dbf","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":149,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"5a3c34a7-0275-4811-be9a-5c67bebc2475","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":149,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"3804391a-8cef-49c5-a055-c692230ddfb6","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":149,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"9e83bb20-93e9-4f0b-a7d2-61895939c9d9","block_type":"box","text":"issued.","page_number":149,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"f9353ba4-58e4-454f-b779-ceabc04dac00","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":149,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"a20c9d1a-62ea-43a8-b917-01b2f73079a0","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":149,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"b0926001-6113-4c9b-8f79-fe1cf074a8f3","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":149,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"4640337d-66ec-4e24-b0dd-1f6f393a8531","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":149,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"34e4189f-408e-4a00-9a06-9a6f2fe219ca","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":149,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"2f509212-7cab-498b-98df-69cf62a2b807","block_type":"box","text":"Exchange Privilege","page_number":149,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"e1e71861-a1cc-45f6-84e3-becd81084a9a","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":149,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"a39ef67c-0516-4138-a0b2-e27bf4da9ecd","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":149,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"c95abfae-2f45-41c4-a38f-34608223f87a","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":149,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"5f43071a-1e0a-4471-8038-72a10f0c5f64","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":149,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"6bba92e8-9464-4bf6-9482-ce901ddc3fb2","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":149,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"a78b7d3f-1cfd-4ab9-8769-7f49136f726f","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":149,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"cf9024a7-1b3a-48f8-8adb-5eb0efb7a45e","block_type":"box","text":"II-118","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"24cbd2fc-c980-457d-a01f-99c161e52820","block_type":"box","text":"NM1026U-5978945-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"220fb7ee-1a5c-4e26-8293-ad0e20968f6b","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":150,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"69cbca31-8804-44c6-9047-a94eedd318d1","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":150,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"33292076-2498-443e-9a4f-2b0c1d78831a","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":150,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"68baa2d6-92c9-46e6-ae38-5b73edaaed1c","block_type":"box","text":"Institutional Shares","page_number":150,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"859423bf-5fbc-4781-9cf0-f344718d986f","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":150,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"cad02dd9-524a-46f3-a28b-8f0b0fc18d50","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":150,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"9df585ad-07f3-4c65-905b-4e43a43b20cf","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":150,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"4b4d05e8-3ac1-4258-b3a5-ffffb507c046","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":150,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"81d4cfd4-f633-4b35-b3fb-99748dc30315","block_type":"box","text":"for Class G Shares of other Funds.","page_number":150,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"86b7a7bf-5ec6-4c8e-9762-7df1348e361a","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":150,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"89469e24-d7df-4656-815c-8f62f9641c2d","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":150,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"7ef2a8ff-bc24-4a94-ae0d-0b557072b818","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":150,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"617e55b7-a2a2-4d26-a238-80ae79dfaf68","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":150,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"0f5eec22-9199-4d64-bb80-531d0a9e049f","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":150,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"e34fc961-44ec-4781-8ebd-834efe6b03ef","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":150,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"9ffa291d-5cb0-407d-91a3-75642a391215","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":150,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"b1c166c6-f25e-42c4-a681-50bf081d8d1f","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":150,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"be65ccdd-7b78-4665-89ae-46e8b5fb03f2","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":150,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"5e3ebb19-fbac-4061-98c6-241ab3eb7588","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":150,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"f1678f2e-bef8-48ab-8167-cfa38df1731e","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":150,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"3f3eb55a-e22f-4c6c-840f-2f65baf995d2","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":150,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"7183589c-3f77-45d1-a481-3380a11f1428","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":150,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"171f0d5e-1d5a-4092-bda7-fdeb077b63f8","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":150,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"2a5e1440-5944-4b36-8d5e-e1bceb3fb276","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":150,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"7d31e719-7790-426b-a68b-5dea035cc52b","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":150,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"c95848eb-b07e-4ef3-84c6-40d96497672a","block_type":"box","text":"Exchanges of Service Shares.","page_number":150,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"5efadf52-9f91-4cb4-8b67-2fdc5cd71a2e","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":150,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"93c0b44e-a4fd-40be-9309-3de81b966031","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":150,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"a49c3ece-d680-4dc2-833b-041bccf0dab6","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":150,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"c7a60fda-999c-4245-92a4-74ee31995765","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":150,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"8397f999-cd3e-458b-a9ed-8d8987d628aa","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":150,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"828cf295-5c07-4aa0-b66a-912a42499670","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":150,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"7cdd8208-6005-4341-a6e8-2524b634368e","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":150,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"012050d9-dd7b-498a-a9ed-56f4539f14b9","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":150,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"40a10b4b-2531-4d87-ba00-954e2f986d80","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":150,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"ef3e59e4-5a61-424c-a309-1fb51848d810","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":150,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"fbb1a487-774e-4059-937e-2b8bd6e99576","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":150,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"27630ef0-f0d4-446d-93eb-77256679f9ec","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":150,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"4385a138-3758-43f7-82a0-40fd04325312","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":150,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"825c6f4c-7784-49f5-bbd1-43b410ad82d5","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":150,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"924dc0a9-d009-4045-ad86-66d3e3d515fb","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":150,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"104412a7-a2ef-4daa-ad71-459d51fcf778","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":150,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"deb5b485-2d9e-4861-9164-02b3ad323459","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":150,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"9dd79042-1800-4d9b-878a-9a83275aad0b","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":150,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"fde2aee2-7723-44ad-92ff-3020c993ff8f","block_type":"box","text":"exchange.","page_number":150,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"89eacd04-5689-4170-ac25-dcd76b0316e4","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":150,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"7fa92dc4-56af-487e-8578-866b5455072e","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":150,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"e4de6111-6318-4966-9992-7f79d8159737","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":150,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"e6cbd71d-90ce-4261-96f7-1502c8a5a511","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":150,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"7097eabc-6d25-448f-843a-a306028870a2","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":150,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"47aad8af-d1a6-4fe2-ad0d-110452d43919","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":150,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"b856dd9e-7705-4f1f-8f02-848771a9b523","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":150,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"7581ac32-68db-4813-a372-362975bab48b","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":150,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"ca85be98-d924-4c39-8524-ae26f91839f7","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":150,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"91eb1afd-9182-4221-9c54-17c968c2783a","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":150,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"ab580a27-2a60-48da-9741-eb5210181286","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":150,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"2f56f6e4-8664-45e1-aa0c-3fb2d1468496","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":150,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"c1af6006-2d2b-4d43-8641-c478fda71f5e","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":150,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"fb6df1ba-262b-435d-997a-5f9a9579a015","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":150,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"490d452e-20b7-4211-ad64-6ae35e234ff8","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":150,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"20612b15-ba87-4ac0-ac42-1463a2c874e5","block_type":"box","text":"II-119","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e61ad766-7a52-474a-86f5-787267d44f61","block_type":"box","text":"NM1026U-5978945-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d62a3a3d-1c06-4623-964b-de7cbfaf611d","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":151,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"28f317a0-427e-433c-a645-b693f10e4933","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":151,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"dc03ece6-03cd-45f9-be66-5b7420c34a04","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":151,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"83fdee31-838f-4906-b10e-03ed86612949","block_type":"box","text":"Transfer Agent in writing.","page_number":151,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"9d0e9495-0c9c-4065-a10d-ec0335873ea6","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":151,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"d0f84d82-fbcb-4acd-9fa8-7da821c0392f","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":151,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"7290c5c2-1052-4fbc-89a9-add3c4505ad6","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":151,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"48810b6d-3faf-472f-a829-951624c0c4fb","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":151,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"384962ed-1f1c-47d2-ac37-c951ceb3be5a","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":151,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"6af5ce89-31dd-4711-9370-79331adb30d2","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":151,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"6819b8ee-5689-4d5a-923c-116e789b9d78","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":151,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"743df4e0-6b92-4b6a-a1c0-1148358c2f0a","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":151,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"2bb68c98-72e9-4cd1-8c2c-d8f08cf0ccfd","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":151,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"94809adc-70a9-4170-83b2-3bc05d5bf548","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":151,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"0d26d2c6-a4b9-4af9-aa9d-5b422f812436","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":151,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"d101f510-588b-45aa-b299-1f1d9a8f40f9","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":151,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"aeaa494c-153f-4c5d-959c-212a8e2e735b","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":151,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"e745fff5-e5e0-4b65-b46d-9bd3e1631e24","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":151,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"4ccae484-c9f6-4420-8170-6f5749650ff2","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":151,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"7faaa1b8-497c-416f-9f7f-b105a225e6c2","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":151,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"44046d93-0905-449b-a3db-271cbc9d76c5","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":151,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"3a708122-ac40-44f6-b002-bdf2e835e19a","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":151,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"be7169d4-1d7d-494d-93cd-74b7f9b5fff4","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":151,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"623f11c4-24c8-4f60-942a-bafbe63b443c","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":151,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"ff728530-a318-47bc-9077-f4c44173b43f","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":151,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"a6617402-663f-4cbb-be09-149ca66c2f76","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":151,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"faa07b89-79ac-4924-98cb-4e38c05fb26d","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":151,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"d430f752-0c48-40e8-b09f-e92a529c5afe","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":151,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"1ccd96ef-1639-4772-b361-47fd7e0092a2","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":151,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"aaa19bef-9705-499a-9e6c-f875320372f5","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":151,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"6cf5b35b-8420-40d6-a8dc-f57620bc2b0c","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":151,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"e376267c-1102-4963-a163-2337722f7cfa","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":151,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"9d0b7169-dbe7-4ee1-8d84-54aba93f2778","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":151,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"f7aa00b9-de97-42c1-adda-70e63b520be6","block_type":"box","text":"may be distributed by the Distributor.","page_number":151,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"e891615c-4a83-477f-a595-a98a398dae24","block_type":"box","text":"Participation in Fee-Based Programs","page_number":151,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"7c8c9014-fef9-4fcc-b44b-75a928ec3de4","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":151,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"9d35c9b1-81e9-496b-960a-c20da330b1c9","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":151,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"f733a2c6-dd40-49df-9997-2fb29b0abc2f","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":151,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"5e8ced3d-f102-47ea-8d73-4b1fcee752ba","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":151,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"5dcb7002-2e0b-4c26-a078-cd67cfc5a634","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":151,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"5151d234-54bf-46c9-b6aa-d1750a63624d","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":151,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"e4ea4c19-1577-4182-ad04-e1ee813b7457","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":151,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"49d755c1-0b9f-46c8-8547-7c80d55b798b","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":151,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"dbd1491b-c989-434b-9319-5df5873212b6","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":151,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"75169134-5591-4726-9f51-274d95030a50","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":151,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"5eedd04e-c711-4c09-ade8-94bb658e8a8a","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":151,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"a82e755d-4842-464b-ae1c-ed6665b69cee","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":151,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"ccf2881c-6956-4a2f-afe6-1090d11464cc","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":151,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"c3fadf3c-0782-4f26-882b-b17f91e669dc","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":151,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"6a9f7632-84b8-439d-91f0-574e661df4c6","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":151,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"1bd8e8d8-afa6-45e6-a75c-afed0b09d5e8","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":151,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"b62aaa36-1ee8-4711-8de8-d3cae567919b","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":151,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"160dd773-b9c4-411e-8fa9-262248589f5f","block_type":"box","text":"II-120","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f9ada79b-a453-4497-b519-7f249b747d2f","block_type":"box","text":"NM1026U-5978945-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fba601ca-a99a-4bdb-b8ee-cddb0e17481f","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":152,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"e262d788-6351-43e3-b0db-58a1f31b081c","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":152,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"64f6ea63-9386-4eca-b382-293de534cfa1","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":152,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"54532fe2-837e-407b-b0e2-8993f2839e38","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":152,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"406703c1-ba05-4062-b794-bdbf8d4aebba","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":152,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"cf98761e-85bb-4ebe-9ff2-d2e987e0c643","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":152,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"d63b100d-f7aa-47fb-8ec9-46b6793b830a","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":152,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"33679935-9388-4225-a0c5-8dcc595aa380","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":152,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"7ae99350-bd9c-48bd-a6b2-b6a60cd33b33","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":152,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"4d597334-652f-4f5b-9b94-8e9f777e91e3","block_type":"box","text":"information.","page_number":152,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"741754c8-5171-4d92-a6f1-d58813a05ae1","block_type":"box","text":"Retirement and Education Savings Plans","page_number":152,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"2215f874-fe66-4c3d-9272-97bc3cde0bda","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":152,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"34efec01-05bc-4e01-b8f6-620557b5d3ea","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":152,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"f824a3be-639b-4f3d-9e0f-8c9da20132a3","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":152,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"f95e7069-6d8e-4f3f-8148-822bfc3afab8","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":152,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d4e426e7-08f0-46a2-aebe-152fb50e9257","block_type":"box","text":"your financial intermediary.","page_number":152,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"92db07eb-899e-4536-b862-886cb7871b2d","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":152,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"9a9089a7-550c-457a-8181-1b9e1a755e46","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":152,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"6d14e060-b813-44a0-bbbb-97b3e092fb21","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":152,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"04e1338c-83af-4dc9-8546-76baac502ffc","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":152,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"2f07e7ef-97b6-47af-9080-d3844fa6fac6","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":152,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"5a593177-27a5-4042-934c-1f59182b2c26","block_type":"box","text":"Automatic Investment Plans","page_number":152,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"c273db0b-206d-40f9-ba4c-849d1620c8ee","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":152,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"8b2e4da0-cf5a-4bc5-a88d-f20779269af3","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":152,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"b8667c1a-1e31-4206-87e9-3a1b2b5a9f19","block_type":"box","text":"®","page_number":152,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"767a0181-4652-44b5-ac10-f6f5076de361","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":152,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"12a4345c-404b-4bf9-a581-dd8062cd86ad","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":152,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"245dc385-3967-4e46-a0a7-17b45877e7bf","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":152,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"c44c8478-0f27-4ff7-a90a-72ea6c5e4a9d","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":152,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"e386a84a-81a5-48be-b476-a7b9e6cdda12","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":152,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"0b3ec2af-af1d-459e-aafc-a681c6f88adc","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":152,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"68c04bc4-d5eb-48e3-a057-55d95a967c4e","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":152,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"f75934b0-0651-47a2-8fc0-a9da4e62b262","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":152,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"e9aa03f3-38cd-49e7-b6f4-56085283990b","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":152,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"77120b64-6371-426c-9489-144dcf4afbd6","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":152,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"bdd69b06-6ed6-453d-8bff-454c9f55897f","block_type":"box","text":"Systematic Withdrawal Plans","page_number":152,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"0c38740d-e50b-4259-bec0-347dd6b18ef7","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":152,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"a994ec70-b726-45d8-9e8f-91b2641f6e5b","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":152,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"48af1389-dce9-498f-98ae-34fe8d7910eb","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":152,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"ad094fa1-6071-4100-8a3a-710229e23812","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":152,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"33db63d6-6e1a-4f14-9dcd-80d994523532","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":152,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"be6dedbc-dd83-454a-8819-7f5e3fd139d9","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":152,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"57a9a14d-3fea-460b-ac61-ba9a786f90df","block_type":"box","text":"www.blackrock.com.","page_number":152,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"89539122-1db2-464d-a2a1-077dd8322852","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":152,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"9e6841a1-78c5-465d-8b0a-0e910ae92c01","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":152,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"c404b3ae-295e-4e7f-aa6a-5040db22a0bc","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":152,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"402197b6-e56b-4141-be89-348ef9961df8","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":152,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"f537e8bc-ae61-49bb-b5cc-d8df09ef545f","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":152,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"327e306a-776d-470e-8979-a1e9d6dfb1ce","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":152,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"58dd3b35-b01a-45d6-8821-42675b330662","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":152,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"6755bcc5-615d-4dde-a70b-60d1d15b850f","block_type":"box","text":"II-121","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"111e9ebe-5c29-4d83-947e-f063fc0a65b5","block_type":"box","text":"NM1026U-5978945-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a8131b1e-1777-4838-98bf-5e647d258e15","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":153,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"b9a83587-57aa-4579-8f1e-759f105c2bf5","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":153,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"7b2d2b4c-61b4-4f80-b7f0-69a8b0b11a93","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":153,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"e2c823ab-49ab-4dcc-9154-000d0eea6737","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":153,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"8f1a5579-555d-409a-83b8-5e4cf75a84ea","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":153,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"149122e4-530e-490f-8176-f1a9ab92d298","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":153,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"f8a9194f-d4bf-48e8-b40e-e330fd32c8c7","block_type":"box","text":"Dividend Allocation Plan","page_number":153,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"129c6c29-72b9-49b8-be2a-a4e8c696eaa8","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"3174e5f3-0945-4430-a69d-349612e52e57","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":153,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"dbdc197e-3941-4489-b721-f9ec5eac3ef9","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":153,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"3f315d16-b535-4685-af46-64b999a33cea","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":153,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"e65e9a62-434e-458d-8507-0cc8c64222f7","block_type":"box","text":"PRICING OF SHARES","page_number":153,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"f08be560-747f-4174-8dc5-9a0025b6afd0","block_type":"box","text":"Determination of Net Asset Value","page_number":153,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"89ea269f-5f65-4811-a584-06ab25c758d6","block_type":"box","text":"Valuation of Shares.","page_number":153,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"755d9572-5e38-4a75-bdf7-3369211693ab","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":153,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"25fb49d4-490b-4960-9257-43e9c88af834","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":153,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"9032bda9-dfab-4e5b-aa69-003867d540ca","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":153,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"7c5fa624-38d6-4172-947b-f7d7737309da","block_type":"box","text":"Equity Investments.","page_number":153,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"b1417adc-88c7-4615-a386-4830de65491e","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":153,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"703a74ae-802c-4dc9-bd7b-02ce11075d77","block_type":"box","text":"e.g.","page_number":153,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"63f81d9d-77b0-48f6-8826-4d01df27ac69","block_type":"box","text":", NYSE), on separate","page_number":153,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"621f6921-2f88-4eba-b4f2-495df3689cab","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":153,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"d29260e5-2d6b-4766-8649-4f0b144ccb50","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":153,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"4782938b-975b-4131-b24e-57f7e48ac737","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":153,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"b7b066d7-51e1-4565-8df8-cba4323788ea","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":153,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"b29905d5-a178-40f9-978b-970b8d9e39d1","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":153,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"81c79e94-c4f9-4607-9506-f38d391dcda0","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":153,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"39c19a20-dc00-4cdd-9dfe-709b34318e9c","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":153,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"1721165e-6880-4fbc-b3fe-9be8dc953ab2","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":153,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"5861eca5-943b-4a2b-a7c8-ca0b420985de","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":153,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"ad4dd893-06a2-43ef-be63-aba795f17e52","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":153,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"4c40dd84-3a22-4aaf-a191-45a20a0df2b0","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":153,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"07278d8b-2e73-423c-8ec5-be8f250daf9c","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":153,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"85f98df1-6823-42c0-94a4-494c428cde4e","block_type":"box","text":"defined below).","page_number":153,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"e75e376d-49e9-419b-a620-bfda305c579e","block_type":"box","text":"Fixed-Income Investments.","page_number":153,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"646273b3-23fd-492f-9879-61929d342da1","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":153,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"9d768272-62f9-4d49-a033-d40340a2e9b1","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":153,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"aa805ca5-3539-427c-80ed-e0638878f654","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":153,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"74d72c9e-969f-481e-9b66-f7e22a51bd64","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":153,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"8193f103-8eb5-4ce7-bbc8-9466ecf4360d","block_type":"box","text":"e.g.","page_number":153,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"109170ab-57fd-47d6-a1a0-2c095ee7ea02","block_type":"box","text":", recent representative bids and offers), credit","page_number":153,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"a2f336fe-5634-4bbb-80c2-0ddba0c7331a","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":153,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"1fbd0d3a-516a-40b0-8a65-fff19d69768b","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":153,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"dac8d78e-c6a8-4363-8f27-c09cebdd12fa","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":153,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"9b313461-38e3-4488-8ea6-962f8a016530","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":153,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"3e1ba0c3-a214-41f7-971c-764dea93d927","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":153,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"2f315f5a-b1ca-4d65-b4cb-f44e8aba8b19","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":153,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"8f86e2af-3e7d-403d-a5ab-afb3de34dd7e","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":153,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"4213c0f7-aa7e-4c04-82bd-f42196437ccc","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":153,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"3156c45a-d7f6-4f6e-9f78-8464b6ea0b08","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":153,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"5603f643-ddbc-4750-94e8-6054ff323d22","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":153,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"2197bd8e-8ae8-4893-8b9d-6c67ebb600c4","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":153,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"f08ccf72-122f-44fe-b7b2-6bf4fbaacb35","block_type":"box","text":"attributes of the tranche.","page_number":153,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"3f666444-b93c-4031-ab51-5664926eebc4","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":153,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"6d5507ae-f3db-4d97-ae49-ae9482ebd45e","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":153,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"21a4575e-edcd-4da4-8640-560e1cfd2ab1","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":153,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"8544e0d4-8729-407a-ada7-ee3ad8c017d6","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":153,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"b9bb1119-b765-4b2b-9a51-50b772bbb9df","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":153,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"d88885ea-172b-4850-8e2f-f85dcd0b00ba","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":153,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"203755a4-4610-4adb-b623-7c182abefe63","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":153,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"046502a6-09cb-460d-b2fa-bbbdd57ee98c","block_type":"box","text":"II-122","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"619f32c3-1b8f-44f5-b8f6-3e6db6202503","block_type":"box","text":"NM1026U-5978945-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3f995b31-f38e-4718-a333-b8e1912cf190","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":154,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"92790002-d1a6-44e6-b409-8af878feab0b","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":154,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"82d54941-3f1d-4e04-94e1-9ec5a78a65a6","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":154,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"3eb83e3c-8188-45fa-b5f4-d6f30a2ce8b7","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":154,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"e726ebbd-34cc-4eb1-ae9f-eb6c296ebbc3","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":154,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"114cd5cb-3d4c-4223-a464-ff1945c9b05d","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":154,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"ceef6d90-3493-4715-8a5b-8fa62d541a6b","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":154,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"6b202a9d-d6c1-4d15-9840-a5c326f32681","block_type":"box","text":"Underlying Funds.","page_number":154,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"6af090e9-325b-4a32-911b-40350b87f62c","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":154,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"3f01e946-2ffc-4c36-bcea-84b0094248d3","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":154,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"79756d8e-fe57-4db4-85e0-f4419d4384f2","block_type":"box","text":"at their most recent closing price.","page_number":154,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"62a7b8d7-77a3-4a13-86a5-bf0a17ed3c32","block_type":"box","text":"General Valuation Information.","page_number":154,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"fe30e412-89ed-4938-880b-a40308cddb66","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":154,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"374fb453-a0ce-45e2-85d1-d545b8fab7b2","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":154,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"1e06bf75-bf29-4734-b8aa-4dffddbe6a23","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":154,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"ca0f5fb5-cf3e-4914-91b4-f1f48811fb87","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":154,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"a637a72c-0ad5-49ce-8036-e72087805e09","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":154,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"5dfeeedd-14f5-40d8-abae-27beca8b7b99","block_type":"box","text":"the revision.","page_number":154,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"dd5f045a-0492-4ac3-a071-5b66be66b95d","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":154,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"6c1b0143-93d5-4940-ad77-6fbe6c0445ab","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":154,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"9ffcdd71-fdc0-48d0-95b3-062f93c82ae0","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":154,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"a478b1bd-8339-48cb-8742-c3b506f4262c","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":154,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"89ac8711-57bc-4799-b9ef-06b4afaf5f1f","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":154,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"ad90b5ec-fe65-4f92-98ba-7d62685eedaa","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":154,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"be1756d8-b804-49af-ab40-4d0d24244141","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":154,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"5c91b8a4-a71d-444d-8fe7-1a9130617daa","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":154,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"0a606088-c20d-4543-8f98-5876664fc3a7","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":154,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"98fdfbfa-fcc1-4e99-bf47-1a7658ccc1a4","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":154,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"4d2eb67a-f4b8-4dfa-b927-05ed81bd7143","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":154,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"8e0ffe78-f68c-4e97-970e-989bed718f3d","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":154,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"af55d743-52ce-4f57-a594-54fb864c8617","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":154,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"6947cd54-6740-432a-a9d5-302787ff1bb6","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":154,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"041cfe57-fafd-403a-9822-af3433e667f2","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":154,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"8f43eb4e-bcd1-42b6-aead-a33f1cb2db40","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":154,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"8f15a6c5-e453-4d4e-83b9-4c04798eaaa9","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":154,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"3c541f5e-7b6c-49fd-bd4c-0c88addc2de0","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":154,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"3e4ae5e7-4f83-4ad5-9a53-4f50739962a5","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":154,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"486dfbbf-17a1-403f-b50c-633b5d05da47","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":154,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"21c7422e-30fe-4dea-a5c3-ad8208ec1b61","block_type":"box","text":"Fair Value.","page_number":154,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"f1552a34-7460-4bd3-898a-297b743f5b76","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":154,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"98edd37a-6aa2-4a7b-bbe5-a47d8a237bc5","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":154,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"30915a70-4ce7-4b73-be15-e5c9d05e3404","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":154,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"1adfc4d4-0c6b-4127-a4af-5e2bc11e7429","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":154,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"b2d7492a-bbcb-43f2-abbd-bbe6e693cf6a","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":154,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"c92234ed-346a-4e20-8608-824995d4896b","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":154,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"dd27ef81-7997-445a-abd8-aefd81c568da","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":154,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"ec0d11e2-dfe3-4d9b-b826-587e17b48e02","block_type":"box","text":"(","page_number":154,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"adf4e9df-d80e-44ca-9702-94bc00eebfc3","block_type":"box","text":"e.g.","page_number":154,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"edeb026e-1517-465b-aa05-74a642a61418","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":154,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"fa1bcef0-1510-48ab-b053-dbc4b5c8a995","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":154,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"b29d675d-714e-47b3-98f7-bc8e45c75c03","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":154,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"1b74706f-10e1-41bf-810d-9ac299dbd622","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":154,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"8d6d6eeb-cb80-4cb8-8b41-fa29e7ae31c3","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":154,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"b0bd1361-d01f-40bb-9f53-5f99d7e636bd","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":154,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"43536945-c368-49d3-b539-4faec5094bed","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":154,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"a1b3c55c-1ad7-4d67-b3c3-67dcb411555e","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":154,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"0d08cdc6-6b43-499b-b0bf-e7ccf35ec851","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":154,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"7e039553-9ca7-446a-8a5e-d8fcf63ba990","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":154,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"f4369f3f-f38d-4d3d-9f98-30d5d636963d","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":154,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"e9629894-9a7e-4f8a-9207-6176b55c17fe","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":154,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"9482026b-18b4-4518-8d39-f2056c285e6c","block_type":"box","text":"II-123","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"01109ed7-7d02-4c4c-9f76-a69b5825a14b","block_type":"box","text":"NM1026U-5978945-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b24b38a3-1164-47fc-9042-bcddd0b914c7","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":155,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"3a368c6c-d178-461b-ab12-28beeea19fa6","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":155,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"52b33993-2b08-4531-9ab9-76665f2a9a0f","block_type":"box","text":"pricing time.","page_number":155,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"80bd303d-4f20-4c84-8cc9-d29dfd41cb51","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":155,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"231e452e-39dd-4219-899f-c812f857f56d","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":155,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"3084e889-cb52-4f82-b81e-6d346246ab01","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":155,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"f6d2fce2-598f-4b83-a66e-ad567c72c554","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":155,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"69d478c3-6314-4d00-99b2-ef5c01f3261f","block_type":"box","text":"assets and liabilities of the Funds.","page_number":155,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"1b36a903-190d-4338-9343-ce35390d45f7","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":155,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"22444389-a254-4a93-b64e-a3861cee51db","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":155,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"9345b449-7be5-41b2-9945-05ce8a610769","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":155,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"55df0c60-2259-40e2-a227-b6b4652ec38a","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":155,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"9a3683c5-edcf-49e4-983a-b935e7c8c0fc","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":155,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"d190a4f7-a202-40b9-be8d-6d791abead5b","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":155,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"35170517-41d3-432c-baca-632a2eb62f97","block_type":"box","text":"valuation models.","page_number":155,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"e15d9051-2437-4bf8-a0c0-e4eaafc6c524","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":155,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"d36ca62b-2a14-4096-a508-cc86e993a275","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":155,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"8f8d33d1-d3ef-46ba-801d-e79318a750c5","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":155,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"5ae0ea66-361b-4d7a-8a84-d563e9340310","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":155,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"ce36d3c1-c700-4424-b49c-8e8ca48c96af","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":155,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"8eea43e1-514c-4819-b41b-72559a1d9860","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":155,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"9e9fe77c-cfc1-44f1-90b2-1edf232e2c79","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":155,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"15c448c0-e87b-4a12-b52d-691f47670f5e","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":155,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"edb27939-2723-4848-b836-812c5460ebe7","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":155,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"1b81b57c-2598-4998-a11f-f0293bf10b9e","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":155,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"83f7c46a-9716-44ac-b8c7-1f4ca4d2b584","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":155,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"facd47de-4443-421f-8af5-16adfbddb44c","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":155,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"fdc9cedd-6363-4dcf-8d9c-8bbdca687c01","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":155,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"20e3e12d-7b73-4177-8511-e727d14a4b18","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":155,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"580af806-2557-4a67-b6ca-dec9be16a02c","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":155,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"1c962b9e-10b9-4478-9705-503fcb59a256","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":155,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"459838c5-9bbb-4d2a-a38b-ab913e645e21","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":155,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"046250c8-3419-418b-b75f-b591acba85da","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":155,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"a6dede54-cd01-4c05-a715-4c2a1a9357c6","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":155,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"6de4c3ac-530c-440c-a401-7e70b866222a","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":155,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"ccbb7557-7941-4f42-8ec7-882e2b5cfd88","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":155,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"6b2c2893-7625-4d62-accf-283c7f49c13e","block_type":"box","text":"party determination of fair market value.","page_number":155,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"0ee6ca7c-e7eb-4a99-8204-390178bd3908","block_type":"box","text":"Computation of Offering Price Per Share","page_number":155,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"5b3d9376-a379-4718-bb12-131cee1026c2","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":155,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"786c1186-a30a-44a4-89a5-f0d274cadd47","block_type":"box","text":"the offering price for shares of your Fund.","page_number":155,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"13dc814c-e099-4531-ac76-30b3cca1d253","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":155,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"b2e231d8-cdc6-4aa0-90e5-ab9bf23a667d","block_type":"box","text":"Transactions in Portfolio Securities","page_number":155,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"51c5925c-d886-4f76-9250-df22cecb8bad","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":155,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"6ff8046b-266f-481b-a23e-13cc4390c538","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":155,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"f17ce30f-d58c-4c56-ac58-173811ad6258","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":155,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"c232cac2-0e30-4c01-96cb-dfeaf11a0cfd","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":155,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"1463555f-5792-43f0-a49d-cf7ddef9d065","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":155,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"41c4c81f-ce1b-47d8-89ab-8d25c8738e19","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":155,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"b74d05d3-d86e-4cbe-babe-c3fd01793f16","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":155,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"be1d36a2-69d1-43c8-8cb0-b5f82eccc626","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":155,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"b918e3ad-a28e-452f-b2c8-f2c07e792958","block_type":"box","text":"II-124","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c53f7772-1baf-49bf-a863-dd4ce31b6891","block_type":"box","text":"NM1026U-5978945-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"95627ba9-a569-494c-bb06-ea67f68f56b4","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":156,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"7920d1d8-6876-40b5-ab96-48e39f2efc83","block_type":"box","text":"reasonable in relation to the services provided.","page_number":156,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"479e604d-84d4-476c-be24-73dc34fc66af","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":156,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"2cf2e4d2-1fce-4bca-b292-10208871e26f","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":156,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"07e27fc5-7f77-470a-8a8a-4d65432f5e85","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":156,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"9121b9a9-f8d2-4a3a-ab54-40ae6ab75f1a","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":156,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"5da5f010-4b97-4e57-bfd4-091e4003ccba","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":156,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"9234996d-8bc1-4a83-a6b9-6d0b9ec9e689","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":156,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"62305791-4b28-40d4-8305-f62e2ea931e6","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":156,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"d238f7c5-54a2-4892-af1d-0a63575f3749","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":156,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"11b4e884-157a-45fd-ad05-ff502869b469","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":156,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"5a391837-4b19-4dd6-be5a-e329ef9c9690","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":156,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"3c85cc31-9887-4ee0-9cd6-f70456e5f405","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":156,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"477a8a3a-8c51-496e-98db-778498dcf637","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":156,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"8b2db03c-2558-4cf0-9308-6d6c14c070c5","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":156,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"0c837fd8-8def-4ca2-8a3f-e5f54773a8ff","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":156,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"2e1a94d7-da35-4054-af06-cfd107d6c3ab","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":156,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"67ca9293-88af-4c9f-9a34-d5393fd9818f","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"f34183f7-8eb1-4313-93b0-2a5b4b72a2e1","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":156,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"5d6d20b1-d6a7-47c4-848e-4512779d59b3","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":156,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"9fd14a71-d513-42b9-a157-bcb8f1fc4d6e","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":156,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"4537f659-503c-4f64-98cf-a557abdba7b0","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":156,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"fc19c384-c1c0-427b-b254-135ce1d20ac2","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":156,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"82e8570c-2e87-490f-be81-5d1ff74f14d2","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":156,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"f45dbfda-a7e2-4ba1-b2c8-c9f91b55276e","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":156,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"be5c7a6c-e9eb-4cc3-b173-719c771b6c26","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":156,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"acd5c9d4-570a-4c7c-9cac-d65425afa34a","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":156,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"ee2658a8-9aeb-4bf9-aa99-beff9cee8497","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":156,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"6948a70f-893f-4ddf-b324-c26ed14ec274","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":156,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"3cfe4846-cbe0-491f-9aef-bdd3a9139aff","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":156,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"f5555fcf-cd49-4dc9-955c-0e39c3e84e53","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":156,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"78fa7f05-dc08-4aa9-bb3d-e114019d23ba","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":156,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"1e8100b5-3e3c-4bda-a4be-fa1b729ec74c","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":156,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"a8363969-d32a-489f-800e-21f3854a596a","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":156,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"dfc482ef-b7ba-4957-9293-eb650b62644d","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":156,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"fe0ce0f5-93fa-4a2a-b3f9-775e4e49fbf6","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":156,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"f5760840-d232-4ba3-80ed-a22386248c46","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":156,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"500af70e-2052-49fa-80b1-b268463a0422","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":156,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"549466cb-d2d4-45b4-8ec1-fd1660f5d531","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":156,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"ee4a83fc-88fa-4e9b-9735-d017055e0076","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":156,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"1ce61a98-5ae9-4ca7-8359-83028c06632d","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":156,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"ae7e61cd-3e24-4b6c-8f40-6bce9a833904","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":156,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"7b93e89e-a74f-4b35-b1e7-4622cc6fbbfb","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":156,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"479e8289-81b9-46f6-a7ec-0a4a668a675e","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":156,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"ab0f691c-b433-4970-a2eb-40c24ee1e575","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":156,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"146f00b6-61cc-4848-bdff-cd820dc1902f","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":156,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"faa3c834-a0b7-41f4-a137-821c9f68612d","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":156,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"9e88564b-b782-4871-953b-c81e990c5a20","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":156,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"c1d737e2-5a72-44ca-8f7a-c57fb8ecf4dc","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":156,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"d38a83c9-1d74-4424-8765-7a064a7223f0","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":156,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"fee82e16-7f85-42a2-816b-8f27a06b0e4d","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":156,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"7490365f-92e2-4799-a1ca-ec0bffa3d4e0","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":156,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"9a8700d7-bf81-439d-8934-e48d0933cfbd","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":156,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"0695663f-64f2-4e5b-a391-df0f6791f11d","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":156,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"448a96e9-1989-4d08-86a3-71aeb77ccb67","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":156,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"26191d4f-04a4-4e75-9fb1-051af65a83f6","block_type":"box","text":"II-125","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"99be30bf-9963-41f3-bae6-b510f26d0656","block_type":"box","text":"NM1026U-5978945-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"05f2c5eb-5cbe-40f0-94da-76a1026965c4","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":157,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"dc7ab41f-b78e-43f2-8527-85d5611bf454","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":157,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"855bd6da-87f7-4283-9971-a6834d80c0e3","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":157,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"9ff1e5f3-eba9-4300-8d54-3ca07e778181","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":157,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"db82af88-ed0c-446f-a3c7-ba3c13eb8b4a","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":157,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"29e70450-48f5-473a-869a-621beb083522","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":157,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"bc4d8720-1cfb-4325-960a-6a9826bd6eea","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":157,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"6d29358a-8f7c-4716-92e3-33c344d38973","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":157,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"1696fabd-c175-46da-ada5-6a42594d7cd1","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":157,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"096732ef-65ef-43c9-88dd-dd845ddcb6fa","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":157,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"4dca8477-3c24-4529-818d-ee2fd311777e","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":157,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"1c4432e5-d194-42a4-be45-bc01b5689818","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":157,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"1c8abf31-0ad1-4f64-8487-7f06269f4891","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":157,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"e223d536-f8d8-40c7-bb66-ca521e3d5340","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":157,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"8a28eced-899b-4f01-b553-11a3aba8964a","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":157,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"2bd21efc-86e3-47c9-b3d2-b594a2216432","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":157,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"7d2b8650-7fde-4d95-b4e2-0622b5c4abbd","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":157,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"280a8f82-4fc2-4c2e-922d-49b36c6ba015","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":157,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"c99bc65c-7cd5-4603-9731-cee29eac1bb8","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":157,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"4089ad60-7826-4a80-9816-50833c062b4d","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":157,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"c40d4d32-cc60-4001-8b39-e09e061f5c48","block_type":"box","text":"brokerage.","page_number":157,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"e3f1cf25-a5b5-4338-aa45-f9a5506b560d","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":157,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"3e80ec6a-4583-46f7-ba19-f19e1e3db0eb","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":157,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"2131cfcc-9dde-4070-9413-c96a6e4df56e","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":157,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"8361ed9b-4385-4c4b-89d9-57d66e15dab3","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":157,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"d4cefa54-7259-4f4a-a96a-63303e9b80f8","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":157,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"86ce952c-116f-4b6a-a266-057049551990","block_type":"box","text":"Section 28(e).","page_number":157,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"10bdea4b-9e5a-48a2-a912-acae921b2a0c","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":157,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"9b6e3e59-0058-485c-95a9-68b10dd706d4","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":157,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"7b614d2b-6d52-4827-8b77-f719d9a4e956","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":157,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"9125036a-21da-45b8-a4be-e64458bd2194","block_type":"box","text":"execute transactions for those mutual funds.","page_number":157,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"9827abce-130f-456e-8f14-c9515ac4fad0","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":157,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"c2161499-c11d-4372-b16b-3eda7c29edb6","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":157,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"3424ed26-8f7f-41a1-913f-f5cbbe1ebcb5","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":157,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"623aabbe-d2a0-48ef-95c7-b56ff85c1b1e","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":157,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"09020b57-80fa-4c0f-ba35-155d6446cac9","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":157,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"19ad338c-c1b4-4011-9337-8cea80ea6446","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":157,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"c8eb640f-8810-4045-b9d3-e4ad1996b870","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":157,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"cfb58c7e-5ce6-41da-8648-443d223edcd8","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":157,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"184490c3-9973-4afa-8ff1-92300162e532","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":157,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"177986a0-a5e7-4aa0-9882-42d506436145","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":157,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"44759621-068b-453d-be37-cca6b74915ba","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":157,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"c2ae95f6-f86f-4d72-9338-4134f1631772","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":157,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"8eabf788-bf6c-4ff5-be96-43b8837f173e","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":157,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"9cdce485-d11a-4268-99fd-3a13c814f024","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":157,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"f3e20488-a612-4fbf-b4cf-57d404a186d1","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":157,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"e1f77a8f-63be-4323-8203-616b94478490","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":157,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"33c1b59c-5240-42ad-8f56-c07eb18778c8","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":157,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"bb3d7a1c-7084-4b34-a082-54026abba0af","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":157,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"20ce6eb5-8df1-4784-8352-d9279b4cf355","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":157,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"9c97e180-756f-4ef8-b2aa-0d094712ebac","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":157,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"3b245a26-65ba-4352-a4c0-0b386dbbd01b","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":157,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"460d4706-7aea-4283-9888-b833401caa2d","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":157,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"19fe47b6-5708-4552-9386-92625f124a77","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":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"5ce64dde-eecb-41cc-a707-1b1f2f3c9e09","block_type":"box","text":"II-126","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"34401369-9eda-4d83-8db8-5e25bf07a19d","block_type":"box","text":"NM1026U-5978945-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"83c6cc38-68a6-4a1c-b464-5ed48410ff3a","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":158,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"83f3b75d-a7cb-4464-b2d5-fb3d497a67b0","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":158,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"15351b69-e80a-46c5-84ae-7de2d26e2a49","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":158,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"eefacf26-2c50-4c3a-ab12-92400daa4818","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":158,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"2881ce68-2506-4ed3-b8a1-9fe07a4274b8","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"6841079f-0fec-49cc-a07f-832a5fb37b6f","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":158,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"ce068a8d-542a-4c16-b2d6-5ed08b57cede","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":158,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"9b30813d-0fb8-4307-88f3-f92f5acc78f6","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":158,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"95d0c03e-cfe0-478f-885f-541e56023c0b","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":158,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"5ffbc2fe-09bb-4c24-a012-02bfc27a43a6","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":158,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"38b02ea9-1e5a-44b0-ad45-3bb347cc5244","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":158,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"f1cdecea-4a70-4979-9119-1ef6ee59b1f3","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":158,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"70c01ce0-9374-4d3f-9524-71d87bf1b9c7","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":158,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"937c15f5-426c-4bb0-84fa-48fa0bcfd663","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":158,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"07f6bf1c-c268-4979-b9e1-a28f954e742d","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":158,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"25e432de-3057-4a85-ae9f-2e46d861b3f0","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":158,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"e35fa5b2-d467-403c-9aad-5241cd427d3f","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":158,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"2b5b6bc8-9025-47de-b74b-71b10924d1e6","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":158,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"bf882cbf-1ea6-4b29-87b8-359237233504","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":158,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"09c384ed-8753-4d39-a338-f5581bc21a1a","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":158,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"6e843ee2-0c43-47a2-8665-5fdf2b39062a","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":158,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"78f2cffb-ddf4-42eb-8dcc-cc34565e34d1","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":158,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"ae007697-a880-47fb-af25-a27c2ca150b2","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":158,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"db0d247b-c6e5-4690-ab79-d2441842aaa3","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":158,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"f53b8afc-8496-4974-8abc-64572457f679","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":158,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"8350ae01-abe9-4d52-9044-1d19bc305327","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":158,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"adf887a6-321d-49e6-868d-0988da36627c","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":158,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"1e840e02-2957-4107-b60c-73ab699bca98","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":158,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"f9fc8f22-d9a2-49c4-9dc3-3ed1708efe99","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":158,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"0909a12b-2d51-4388-b43d-0b3cac65fd66","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":158,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"c4df2221-7138-48df-951a-04ec0d89a2a5","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":158,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"6d6ad183-5cbb-4447-b0c8-9d9abd973c92","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":158,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"ad6df81e-3f0b-415d-814b-323403e9201d","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":158,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"25ab35a8-3b21-4e01-9258-fab5afb14376","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":158,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"d1a0709e-ed42-4505-96d1-95e9c9fe2cf8","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":158,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"7aed247e-6b32-444e-a027-4b57c4362650","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":158,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"259320c0-877c-4064-910d-61a2f95c259c","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":158,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"3ecbe6d6-35ad-425a-93f9-a9d7269acb37","block_type":"box","text":"accounts and compliance constraints.","page_number":158,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"4a1264a8-ab6f-4a3f-842d-f94709b79c75","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":158,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"d41cfbb5-b35d-4ef6-85a9-43eae9e19f8d","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":158,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"f4e35c5d-5c62-4143-ba15-edc129ca36af","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":158,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"240834bf-1c10-4a34-92fd-d56d7f33d1a3","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":158,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"d4ce0bc2-77db-4519-a8ed-79ff656febd8","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":158,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"3d49b220-a40d-4e47-b6e5-e8b73bba9821","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":158,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"e91fe0bb-7847-4af4-964c-0c8d0c376dc2","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":158,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"5b776396-e9ab-4620-a47d-e50d5bdd87f8","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":158,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"4e03dc09-91aa-4360-bbe6-b741aa596150","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":158,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"1c8bd5fb-9a53-4abf-adc5-76956ae74a40","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":158,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"8a4d4308-42ec-43f4-a524-518c0bdb1b3f","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":158,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"5777600d-e640-483b-9f36-d77f2caf88d1","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":158,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"0e3c623d-eb20-40c1-b3ca-ead7a4bc0f30","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":158,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"eb7dd5d9-88e9-4e2f-abd1-af7afb46d51e","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":158,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"37c57f2b-cb26-49da-b666-e86faec724df","block_type":"box","text":"clients may be used as well.","page_number":158,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"f57f974c-33f3-4f21-893f-43d0634b8bd1","block_type":"box","text":"II-127","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d11c9b92-9331-42ed-982a-4e42e671cd40","block_type":"box","text":"NM1026U-5978945-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a8cb3897-9d6a-4a61-8337-031a56a370c3","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":159,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"070086dd-6c95-4913-9f2b-00bf7a3ee896","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":159,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"8c1ada97-ce31-4cb7-88d9-b36042929997","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":159,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"0a57e789-f7f3-4896-be3d-8b2243a12757","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":159,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"17bd56cc-ad06-4e51-89d4-b07c6487137d","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":159,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"736b3d43-bc1c-4b2e-afe0-104b1c4e6404","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":159,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"2aea138b-68eb-4517-b10f-8ede7a54df30","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":159,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"c05f4223-4a85-4bf6-a68e-8ab4f5bf3c25","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":159,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"dda50156-20d3-451c-8892-6f358cc8225a","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":159,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"b71dfc9f-8905-47fe-8460-999d33f23325","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":159,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"948088d9-4079-4de2-a14c-d122690e9bca","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":159,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"a26c58ed-7abf-479a-8643-ce8e4cccb4b1","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":159,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"236f6439-8afc-4274-8452-b2a48d3dfb86","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":159,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"da92cd68-e54b-476e-b3f9-9c56906954e4","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":159,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"13883098-1212-4817-91bd-5d1a846357d1","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":159,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"10527902-14d8-4d78-b385-2e6cf8c2d1e2","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":159,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"532f58e3-a36a-4dfc-b916-5feba2332dc0","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":159,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"c9dea9b9-f1eb-437b-805a-f47ac0a56b3a","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":159,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"3885ceb5-6d86-4426-9ff8-f207393c81ee","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":159,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"aebecbea-3de6-41e2-b01b-4aa54c973dbd","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":159,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"8a8ca592-5fa4-4e2a-a00e-022894940cba","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":159,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"d8989c21-6d11-4562-a318-11583e6a81cf","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":159,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"ac5ab77d-0baa-409b-8754-3e9a0b001cb8","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":159,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"b1f1e69c-665f-47a3-b699-515e8555165e","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":159,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"b9fd3401-3ea2-4169-b601-fc41badd0f1f","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":159,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"ef9911ad-f6d5-44a6-af81-f819cd19439e","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":159,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"f08f2eff-eeb0-49bb-9d15-63445c2d8c13","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":159,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"1d7d1fec-0271-4b36-b6ae-083a5ab3562a","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":159,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"87d993af-6766-4e6b-b1e1-c012bb96e24f","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":159,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"a0a84217-5752-44ff-9a58-e495f54efa22","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":159,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"e5f8aa86-b91f-4b80-a2c8-a9a6164010a4","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":159,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c8c23476-7d69-426b-9f5b-4cf6ac8762d8","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":159,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"0440feb8-856c-4fb0-b3ba-0eb9f993d4c4","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":159,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"1fb35503-9665-4226-8914-1200a295964d","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":159,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"d0f3267e-57b6-4c0c-abba-db027586d578","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":159,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"5041cc46-5e88-4609-8f7e-eb481120e70d","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":159,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"67ee058e-4ae2-4144-8440-862df3707f4c","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":159,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"7a39b7d4-f83f-4ac6-977b-68e4093a0f45","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":159,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"3af3192d-1934-4092-9b70-f52278b6113e","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":159,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"3007abc5-7c53-4e9c-93c6-6a95cf81971e","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":159,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"8b7d9bfb-b787-4d3c-8f3d-49233990b2f7","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":159,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"46fcbf8c-8ffd-4c64-819c-fe444aec1dd4","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":159,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"2da8f8a6-f395-4973-9e17-bfb2b222257e","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":159,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"518f0937-7bb2-4a19-8a8b-104f8bda71eb","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":159,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"3ee78f55-4992-4731-8c5b-4c6bad36006e","block_type":"box","text":"Portfolio Turnover","page_number":159,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"cecff1bb-14bc-4360-ae07-d3c6d99a45cb","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":159,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"269d8881-8975-4ce5-8e87-35116e7cc6d3","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":159,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"4fa6cfdc-9992-440d-826b-cbb12e62ebab","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":159,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"dddda4cf-ec55-40a2-9088-8ba6fe54d2de","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":159,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"50422a0a-ef73-4a7e-9d0e-c378b24b31c9","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":159,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"a79f18ed-7629-40c2-a078-7aa0b4e32551","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":159,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"b5464a0f-9819-4749-960b-74dbcde35f20","block_type":"box","text":"II-128","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb377ff3-c4e9-4623-9552-5a917c46dce5","block_type":"box","text":"NM1026U-5978945-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"866502cd-518f-45bb-bd45-a4988f37903a","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":160,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"a6250848-858a-4228-a287-f4e34107ca11","block_type":"box","text":"Dividends","page_number":160,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"f44a24ab-b984-4bd6-8975-350946732c3b","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":160,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"09f91a28-8d0c-4f05-bd0b-2a00560eaee9","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":160,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"937fe637-5a83-480e-a210-ed5b422ccb5a","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":160,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"3ea012a3-1f64-4503-8ce3-40320e079946","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":160,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"a29c6065-e5e0-4582-adbd-d11e2aa0eaa3","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":160,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"85a3ad7e-dbe2-4763-8c1f-cf2809118e16","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":160,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"67491e34-bac1-412d-abb0-39ef4f90aa1a","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":160,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"edefd615-7871-4493-8e74-b0c3bd1949a2","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":160,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"7063ff71-d1fd-4c8d-8ba4-0fa1050dc129","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":160,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"53aeebc9-41eb-474c-8ec8-7816dd127414","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":160,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"a9f88e54-daf3-4c36-81bf-3e3d6c33ecdf","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":160,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"3fa25fef-6743-43cf-a350-1a702b07d910","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":160,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"4de8cddc-c118-48a4-83ef-156322a90341","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":160,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"9d2ed99c-bf26-4bc2-972b-ebcf03cc1a91","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":160,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"7481c094-0a95-4156-a734-429592d699af","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":160,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"c7d33147-954d-4795-9ee0-85455198218e","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":160,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"518a8d22-c93e-4152-8a54-13e8ba06f9ee","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":160,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"35735377-860c-4cc9-8d35-c4548e97cc7c","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":160,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"b0c3ad06-44b2-4fbb-a7bf-d3de8b41fdd4","block_type":"box","text":"Taxes","page_number":160,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"8042bf54-9a35-4733-927b-be97249e0771","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":160,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"9f99cecb-ac9e-4463-8c48-ace1c877c65e","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":160,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"6b5bc936-6365-4266-b040-1e7b6f21227c","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":160,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"b211c254-16d2-48f8-898a-a75c89635219","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":160,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"d05ab60b-2661-4e24-a658-cd4c98e91041","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":160,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"1b4afcdd-008a-42d0-9886-b7cde8f85045","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":160,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"cc172c35-59ea-4381-be0d-39d791078651","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":160,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"dbbda38a-f3ae-4f0a-9bb6-330224c6bb2b","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":160,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"178c05be-8ece-484c-8aef-0dddbb3ed167","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":160,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"e230751e-3126-411f-973f-73af25a7fd74","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":160,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"ce9420e4-8aa2-4556-9184-65078b13fd54","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":160,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"eb0d492d-ab5b-49e5-869f-2428b84fafec","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":160,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"cdf67edd-fd54-478b-89c0-80f9f776f860","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":160,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"ec2ba184-c052-426a-8735-87ed250e04e2","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":160,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"15296c60-fb40-49c1-a0c6-9ed5c49ae409","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":160,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"15a5d75a-79d0-43f6-9e2b-73062f22333c","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":160,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"9b61832e-7e4b-4ca1-9317-3304c9fe947f","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":160,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"996e6017-0fb0-4ccc-8eb6-99c5ed33a0e2","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":160,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"1443a2ef-27e0-4c6b-ae20-65bd90e72d74","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":160,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"395d912e-527a-4cf0-9d1e-e8145ecee99d","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":160,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"339942b4-51a3-4330-98f7-7852bfba64fb","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":160,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"09f08c87-eb33-42cb-92d9-42f343d27e14","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":160,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"ab1002af-2b4f-422c-8a3b-de5cdfe52c7c","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":160,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"790d517d-a585-4eb6-9948-600959a36d9f","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":160,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"86f8c9f1-1bdb-4d42-839f-d5419ed4e1c8","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":160,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"43825254-5df4-4d90-8e05-81500d2acb3a","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":160,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"88b62a24-6962-4856-80a4-e60bfae1a3a6","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":160,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"b47da993-609c-4c38-95ec-9ea2fc92faef","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":160,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"b5164499-8fde-449b-a4a2-54b5aad95774","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":160,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"bb5ddec1-724b-4974-9ced-61e7d7cf3182","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":160,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"1baff22f-f7be-40e2-bec2-bac9609db855","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":160,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"bb85c9a4-cd77-4ccb-b62f-1937f45435f7","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":160,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"eab2c8f5-7f9d-4c7e-8bd7-841199243fb1","block_type":"box","text":"II-129","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"69291280-a069-4e2d-9153-96d8caded2ea","block_type":"box","text":"NM1026U-5978945-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c00e22e3-6ec4-4931-886c-0a21ce28aed4","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":161,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"b911f991-e77c-4751-96ca-7d4aab1609ff","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":161,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"78962ac0-2f27-4599-8c30-bb30944dc259","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":161,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"d78a1320-b31e-45ff-90d1-d632a856b664","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":161,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"0cd5509d-6d8f-45a2-9b74-ae696448bc85","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":161,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"417fa35b-4176-4c4f-94fe-be2cd9b16ac2","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":161,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"d93433c6-b24b-40e4-95a4-736ef9a9bd07","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":161,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"8f7608c4-fcfe-48a9-bcde-6ce905b4cb98","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":161,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"1aa686a2-90b5-42d2-9755-b526220ecba1","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":161,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"6f59d7bf-e90d-4a0b-8e67-12caec96bff5","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":161,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"3f233530-6d33-4e82-87f9-45ca7eba4866","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":161,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"5d0349d8-0133-4cb5-8122-9accc1972119","block_type":"box","text":"limitation.","page_number":161,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"3a6a7554-fcf6-42f8-96ff-6c23c313c53a","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":161,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"f097676f-e940-42ec-b8f0-b3c331b5df96","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":161,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"313eed4d-d9b3-46ac-92f0-bcac0a42c69c","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":161,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"7388791f-c6ba-4717-b0ac-4e0815f9d107","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":161,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"670b7735-f959-47c5-b158-f822fa81a231","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":161,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"2b80437e-db0f-4416-b714-80b939678b1a","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":161,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"582d610c-a6c2-40a8-aaa8-d2b52f453479","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":161,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"e7da910c-b6d2-4966-9c83-1f95719d469d","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":161,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"8198c295-febe-4db1-af3e-1a519a8c48a4","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":161,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"62f31210-fbaa-4252-93ed-8c8790af64ec","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":161,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"72b704ed-39e8-4da2-afa1-3f04eb7dbb1f","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":161,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"adab9b58-5d57-41e6-aa74-0e92059cbde5","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":161,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"5912a8a4-ce4d-4677-a24c-f74bed9372f0","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":161,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"a4e41fb6-1b90-46f6-a9b9-9f985ddff99a","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":161,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"3f5f9821-e838-4b42-8e0b-9687976a8f31","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":161,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"19edfe2d-e0ca-48f5-ad94-f80d0d78a299","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":161,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"eadc1ea3-63d8-4a60-a3c9-a606a8a0097f","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":161,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"c4acc2eb-cbfe-493c-830a-1f3ba5717fa2","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":161,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"3949f1c6-6f8c-4044-9df9-bce2bfff2b07","block_type":"box","text":"constitute “qualified dividend income.”","page_number":161,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"aac0440c-529b-4c44-a716-096089811ab1","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":161,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"a5853bcf-0031-4b91-b938-6447dcb41598","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":161,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"fc8a4ab6-7700-400b-bdff-275d44d93175","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":161,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"5a274f7e-e606-407d-881b-832bc9953d48","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":161,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"306fa824-b7fb-4212-98e0-80bd8ee72efd","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":161,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"d61397c4-9041-4421-95d8-8194e80c2781","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":161,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"86cfaef9-fe8a-4f71-a7b5-d9f4a0c6a462","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":161,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"c54bd384-8f77-4af6-997b-804fd7a3e9b3","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":161,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"2656ebe8-2b63-468b-9359-acdc716835ad","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":161,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"6efffd55-703a-4257-a523-39c2f83cb33b","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":161,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"1fddd8e6-b168-4d4f-9cd5-6109823994b5","block_type":"box","text":"against their taxes.","page_number":161,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"f4f64b35-0df0-491d-8e9a-cbc9ca58bcd6","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":161,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"0921c2d4-9418-4aba-97b6-ba26c0fec8d7","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":161,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"a9ba04f7-1a36-4895-b514-5c4ab0b02f16","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":161,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"38e7569d-d161-4b01-84aa-7c08becb40bf","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":161,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"84e4aef1-ba20-4080-a474-8fcc75b0c6f2","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":161,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"68f69999-386b-4513-823b-44787aea102b","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":161,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"022c6e75-7918-4a1f-8e5e-cbedf12df5be","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":161,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"d84a690d-18b6-4838-8aec-89e417935955","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":161,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"d4431808-1e92-4380-8487-d87d9f5e804c","block_type":"box","text":"dividends received by the shareholder.","page_number":161,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"74eec1bd-9b9e-4529-93a3-ff538a1c3d7f","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":161,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"55d70467-49cf-4a39-9e28-284a74ac1fed","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":161,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"441fe465-6a67-4882-9952-90900f3162b3","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":161,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"93585f16-942e-4175-a7fe-2ef1ba4382e4","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":161,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"548e4997-401d-478e-877d-a21e9d2a39eb","block_type":"box","text":"II-130","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"77129519-4286-46ac-8147-6b59ac2df982","block_type":"box","text":"NM1026U-5978945-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bc572761-a0cf-419b-a942-70ffd90ed772","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":162,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"9726e3d0-5b80-4007-aa4e-ff31eaea5d2d","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":162,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"b690d6b6-ed56-40ea-9310-fdc9d037e9e1","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":162,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"435bb926-0eb6-402c-afb9-23a93171addc","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":162,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"1bc86b14-c25f-4951-a498-af2b5d4b7362","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":162,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"22dfd672-1224-4184-a132-962e52738701","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":162,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"2b6891e3-a622-4ea0-93f3-d86c96b968a2","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":162,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"0bac1c05-1d61-4ac1-8184-00b98d9613c5","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":162,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"d0b79bce-5600-454f-b9b2-97fdb7b2be73","block_type":"box","text":"taxable year.","page_number":162,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"890cfe96-dbf0-41fc-a33e-a9e12b056b9c","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":162,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"0d381a73-30cf-4fb0-b597-47f90a5948b1","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":162,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"0b09861e-0135-47ba-b2a1-62c45059e824","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":162,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"455d5ba4-263b-4ef6-9738-b054291c387d","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":162,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"7efcfba9-64e9-4938-8cf8-8c51273f43ce","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":162,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"466c6a93-2357-44f5-bc7e-925e6c8c685c","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":162,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"2f9e1126-f4c6-42c8-9f4b-942871bfa144","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":162,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"ae79772e-0a40-485f-b82b-a8b673092ecc","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":162,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"169a7d93-f863-4e54-a5ec-0f00cbaa4d37","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":162,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"94b8d78e-a7b1-4360-b181-419d6361921c","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":162,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"7a1b6002-64c2-46d8-830a-0914f7c6d3a8","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":162,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"b5841f6b-3c7f-4349-9a6c-0d0385788541","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":162,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"842a25c9-9dc6-40fe-b067-286cccdf99d2","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":162,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"330c8f8b-8c54-4bb2-a3cb-d94a4ed2cf50","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":162,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"5e3564ee-063d-46db-a962-f4c42e1292af","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":162,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"d6bacc5a-5789-46c7-aad2-19b0207c04bf","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":162,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"3dd98742-5f0e-4aaf-a444-ec2063f82486","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":162,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"664cc9a8-177c-4573-b0d3-c8ecbe85ed44","block_type":"box","text":"special tax rules that apply to their investments.","page_number":162,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"bca81dd5-947e-436f-87f8-12a81c61a205","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":162,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"b7d489dd-d75d-4fdc-a305-cd352c680731","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"7893b2f6-f0c8-4abe-9638-95c3d359bd09","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":162,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"78bf53cf-28fd-4342-9aad-06f9b7a7c818","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":162,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"677693d2-faeb-4c8c-bf02-23e2e619a781","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":162,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"40af63bf-c433-4b24-a4f0-9f705c3f5669","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":162,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"92a1d9d3-6127-404b-a05f-69125809f3e9","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":162,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"368307d2-8447-47ca-8529-f47b13ef0e45","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":162,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"3c70aebe-094f-4792-96fa-b227bafb324a","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":162,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"1272fbe2-a504-45aa-af11-8c5100a63b52","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":162,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"40e35f40-7c91-4bd8-8c08-214314979e94","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":162,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"3b1772b1-90e7-431e-838e-96c56214d896","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":162,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"7bd60735-b1e5-4c30-9ca1-40a1209ec704","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":162,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"09990556-1070-4e47-a597-6f006851e892","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":162,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"2685ab11-6d6a-4bc6-839f-a3472defdc56","block_type":"box","text":"redemption of such shares.","page_number":162,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"821ebdff-2dd5-4349-8789-03690a1f5259","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":162,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"c62c9f58-6c55-4fcc-add2-4d53ab4d97e3","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":162,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"cb7b61db-874c-4fdc-bd2c-8ad013fae503","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":162,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"8e32e5f9-714d-4e9f-bebc-94a86ad3d206","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":162,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"92f0cf9c-3ab6-4dcb-9a1d-cac8879bbfb9","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":162,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"b2401cc8-d9e2-4361-bb50-8d71018fce73","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":162,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"a64ffef8-c5be-4e82-856f-de755621b328","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":162,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"d41ac7d8-516a-4665-b33a-84c5ce82e0b6","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":162,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"053fe985-7cdd-49e5-9134-94dea8910409","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":162,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"51ce090c-7050-469a-864d-ac4a4bbfabf8","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":162,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"cf774742-20d9-4ad8-a958-c897c8233cb5","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":162,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"71c2e787-3b9d-4648-9f14-2228b842cbd9","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":162,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"ea31bf13-9f8d-48c8-9fca-07b2880f77b5","block_type":"box","text":"II-131","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"483e6c77-47c4-45c3-9c57-f3df84c51d11","block_type":"box","text":"NM1026U-5978945-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e2e80386-d2b7-46cd-b39e-1c5b36726b3c","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":163,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"d9f92c69-2648-4e1a-9375-a1f46f680c45","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":163,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"ad1d69ac-0209-46c7-a151-2d7b40977444","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":163,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"f7c7b8a5-cb78-41c5-89cc-e29fe8c8b361","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":163,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"0be22c4c-3ba5-4900-b1db-e8a2f0632634","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":163,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"eb1748ec-93c7-4f1f-ae82-99665f65b8e9","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":163,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"f1f42a98-1e4b-427e-92be-fd40c122f1ec","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":163,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"546f0b29-e919-4c42-b517-48a620544d04","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":163,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"a6ca0942-6cb9-4642-92b4-e025cc6a8e26","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":163,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"3e707de9-053e-433a-a482-411e22a26456","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":163,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"8fd7e984-e80b-48be-9caa-3815e44d8a6d","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":163,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"34288477-6c60-469f-b298-aafa14043b6a","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":163,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"85ebeb44-517e-459c-affb-def359ce1695","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":163,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"791e66b5-4739-4241-bec4-54cf26ba79af","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":163,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"07866e9a-99d2-46e6-9fa0-c37e3fde3b63","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":163,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"e2b4201f-ce77-40bf-9df2-4c00e2984620","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":163,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"182a5763-74bd-42a2-b3b8-bc6ac279eb30","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":163,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"7ef891c5-b51d-4054-9f5b-9a46da463580","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":163,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"1f248a46-a588-4836-8714-ca85225d975c","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":163,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"64c93c99-0821-4af1-9b5a-3b5d0bd1b13c","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":163,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"377a03ba-1b71-43ea-bd09-8a42d38e041c","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":163,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"26608d24-d05d-430a-b946-d00a8f8ca6d6","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":163,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"ac5288a4-d0f4-4889-ba06-d89c15a70e52","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":163,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"581eb08e-2c3a-424f-9b5f-c7446046b5be","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":163,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"756840b9-5715-421d-8958-e5b162e063af","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":163,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"4fd691b5-bd94-42d3-8420-d29a03b6f9c1","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":163,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"f44ceef1-e4f8-4c15-9ec8-df93ad052215","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":163,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"e6034c99-1f7e-4f3b-aea8-9be8e33c4034","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":163,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"b6977a1e-eb9d-40a8-be83-d18472ebb82c","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":163,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"8b1e943e-1a38-4149-9866-b57121afbe7a","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":163,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"7b4561cb-7acf-4450-ac37-0c695d1ad538","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":163,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"2a5465df-2950-4f00-aff0-503e0d2ee63e","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":163,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"abd438e6-12f4-49f2-bce5-a04432042938","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":163,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"7b72853c-8dfc-4e41-a268-ff43c9291f2f","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":163,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"1f7add21-e97d-4ffd-bfe3-4c6671ddb2f2","block_type":"box","text":"in subsequent taxable years.","page_number":163,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"a2e24151-52f8-4d4c-b552-94bdf6ec7f52","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":163,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"c960a64a-048e-43e1-98ce-44d313715417","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":163,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"7781a772-76d2-472d-832e-d4f2a0a407e9","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":163,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"7e0d8683-3202-4d9b-baab-ff1399769340","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":163,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"7cf734ca-5e03-4d6b-b922-f8b4eb9024e0","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":163,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"6e1d9291-01fd-4694-b1fd-c069409ac16c","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":163,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"16f168f4-5920-4a2b-b1c8-db5416890c6d","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":163,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"bfe21193-6a27-46aa-b01a-590dad8134f3","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":163,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"25f9a8f5-e20d-499d-b0b3-bdb2419b4a8c","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":163,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"78f9ffaa-494a-4313-8554-da69e71fc900","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":163,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"ce79c22d-279c-4fad-a1d2-e684b394da09","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"007025ac-e725-4538-9d18-0064db3ea406","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":163,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"8a801347-b6b5-4b65-85a9-b265631b39b5","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":163,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"c039d2b7-e541-4d9f-980d-852fdc4894aa","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":163,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"f68d6d25-f11c-4008-bbb1-2b280990db65","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":163,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"c61850a9-3b92-4aeb-817a-4b9686781083","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":163,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"40d66f11-6ffb-49b0-962f-ad1b221465ab","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":163,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"1c63fad7-0d17-40fb-bcb6-90034010e5f6","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":163,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"22e28ab9-c211-49a8-8fbd-4005b8fe61b5","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":163,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"47c148f6-6d71-43c3-bd89-64038acb0563","block_type":"box","text":"dividends under these rules.","page_number":163,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"5e552eca-ad57-4dfc-a1c5-1f1ce8c66e13","block_type":"box","text":"II-132","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1ae9125f-0a8b-4515-bd3e-916a2d7ac66f","block_type":"box","text":"NM1026U-5978945-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"64bca4a3-f3ab-4d66-99d9-ce59e6e0c958","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":164,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"5cd2740d-158c-44d0-8141-ee21d177a8d7","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":164,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"1d0e9f42-dee1-4ae1-8c7d-f3ec08587d18","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":164,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"037d6b97-44da-48d8-829e-0bbb4cafaa14","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":164,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"3730dd0a-2aa4-4410-a3b9-7c8450b92895","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":164,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"0826b99e-03b9-4709-8e59-1c2158c797c8","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":164,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"16078ba9-4aac-47ff-b071-14fb3c4a714b","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":164,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"5dabd202-15fb-433e-ae4c-009e0566d6f2","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":164,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"a040e392-8585-4b7d-8043-3af9946457c0","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":164,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"55c5ecea-8f29-4d12-9084-b0d05e861ec8","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":164,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"9ff23587-f683-4fc6-adad-57b33d13ab30","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":164,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"6b3b2ee9-6d4e-4a05-9022-fc3e8a9757cc","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":164,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"863f556c-da0f-4fa2-906f-425bbe0f0fd6","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":164,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"a4226fdc-54a1-4de8-928b-0c98b50c9dce","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":164,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"fab1966a-9050-498a-9b3f-859d041cb686","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":164,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"a1e7253a-0d47-4715-be01-5de7e8c5ed6f","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":164,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"d28e4faa-e860-4f87-80ed-8a859e09e269","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":164,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"94f90555-cf7d-4e38-ad5d-16447333a588","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":164,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"bfb30301-c43d-40ae-8eae-27f7d2c8c207","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":164,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"2531417b-159b-47d1-bd24-1c47a0cb2ddc","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":164,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"f321ecd2-0fa6-497a-be97-f5e9020af674","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":164,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"ed65b4e2-570b-4f2a-8bf9-428106172bd7","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":164,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"89e1a1ba-9224-49f2-9ffd-d31f14b7fdde","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":164,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"0ea645fe-c46b-4b69-b3bb-8aec91ce3724","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":164,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"9fa28bd6-6ce6-407a-9794-ccdf298f4a12","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":164,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"f579849b-73cb-462e-b18f-b06644029b7d","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":164,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"6255e684-b75b-4d2e-b46b-12557353aee8","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":164,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"67c44251-790c-4b58-b482-37666d911ba8","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":164,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"6a8cd120-902c-43b6-b170-9cba10c820f6","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":164,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"4ced11a6-4902-4a6a-b613-44b79b102ece","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":164,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"3961bbbd-bdd4-4a30-aa03-6e92fc3a2a2f","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":164,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"903ea24e-2a79-49ca-864a-452deb28b05e","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":164,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"c6fb77d7-c06a-437b-a6a5-ea38278e61e4","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":164,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"06bd0e1a-7d48-4674-a363-858367d9d2c6","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":164,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"98aa2eb5-06e8-4da8-b50a-173574effd66","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":164,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"644183cf-e70c-4568-b3e5-8c286c365170","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":164,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"565a3997-3c44-44d8-bf9c-2f6f113997b9","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":164,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"f0a224a0-1f0f-4dd5-a0bd-9e7009e43639","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":164,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"4efee443-5de0-4261-b121-8cf399e08bcf","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":164,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"9dba2e90-4da6-408e-b06f-e938194fe8d8","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":164,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"e2da7cfc-0c18-4992-af29-f3e024448352","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":164,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"a9015de2-9127-4814-a734-81dbc8d57e99","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":164,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"3c81107b-13a7-4091-8925-c58ea707d132","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":164,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"eeed1f1d-81a6-4bd4-ad0a-f0f38908d962","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":164,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"ebdd8daf-8ab1-4b16-912c-7de3abf73547","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":164,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"7545019d-9e32-4f67-ac51-c72ccaa58f8d","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":164,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"058b3555-c4ad-4a03-ac74-46659c943df0","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":164,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"5885b218-d591-4c08-b8e5-b6514bfed3f2","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":164,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"a48a7d68-bf04-45db-ae70-69584ecc57fe","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":164,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"dae169c6-7fb5-4137-8e48-cc5f0744fa9b","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":164,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"718c3578-63ba-4192-bd68-7a140265a09f","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":164,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"418920a5-a9d4-48be-86bb-f9341f9bf4a5","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":164,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"ad02c847-3653-4a2a-a0f2-b8a2e68c1407","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":164,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"01ce98c1-4d5d-49a9-8494-dc924bc274d8","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":164,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"c6d259fc-cb23-4cec-95bd-12fb4fa6ac30","block_type":"box","text":"II-133","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9c9be949-7a24-478c-ae0b-9a9d50887b70","block_type":"box","text":"NM1026U-5978945-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"695262f9-7310-4d1b-8da8-cfa95e0026fe","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":165,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"8191bcf8-7a8d-4664-ae49-b9a9c8b06205","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":165,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"87a10ec3-57d0-49b4-85bd-278bd903a29a","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":165,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"342461fb-91be-45b8-a30a-82e95c34dfb7","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":165,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"a2fa0a00-2769-4385-abfd-c469058d5bca","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":165,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"e8caf521-fff8-4ed1-ad0b-573696ebe7fd","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":165,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"592ea703-098c-44be-89dc-9812739add9f","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":165,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"d77da51b-8ba3-4ef4-b81b-2b7e126101c5","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":165,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"2525dca1-e8b2-47bd-9e1b-d4d0cd13b395","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":165,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"4f48a660-cced-4a6f-8b71-6800972ae628","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":165,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"847f84ce-aa72-49e4-900d-84f80b93b1db","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":165,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"3c23b0c7-4c3d-4847-890d-aa65b8596842","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":165,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"23d9bc72-f888-46f5-a385-83a48da0a4ad","block_type":"box","text":"investment opportunities.","page_number":165,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"1210fc90-f0cb-4fdf-818f-7904e3d00616","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":165,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"3c9985ee-5c8d-4d0c-a4ef-1ab580bf5d3b","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":165,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"6cbd0d27-d23c-4ac0-a67d-6832aeba2cb1","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":165,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"b4720f8e-b710-45c4-b38d-0cf751b5b8e6","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":165,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"c18ae648-3b6d-427e-8b81-c390378da3dd","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":165,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"defe205d-f95e-418f-b99b-9d04053ab747","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":165,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"6f99b3c2-ab5c-40e9-b28e-8a07de912ddc","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":165,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"60f89b04-e937-4937-b71c-644d2b4bd212","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":165,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"2dd11539-df02-48c1-ab5f-1885a8e9542d","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":165,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"ac68ea0e-5f1c-4bcb-9c74-e5cb35aa0a3f","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":165,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"707939eb-01b3-47ca-b344-1c24e0340e97","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":165,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"0592a239-b71b-4dfa-b165-3767cef8d631","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":165,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"23503b58-d6fc-4a35-9ff4-eb2bddc2427d","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":165,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"fb66d772-9363-4cf4-adee-056bac007c50","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":165,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"e8a23c19-355d-4b72-ac9d-13d4aa9a7f46","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":165,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"9d2ff8a2-8ed1-4a66-b40b-131a0cffdc8a","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":165,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"9eb6039f-0ce4-4314-9082-0feaedab0b34","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":165,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"de046163-ec82-405b-a2d7-684c275098d7","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":165,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"c6f72573-bbae-422e-8af6-84cbfdd18cfd","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":165,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"b28c9c93-d474-4f35-b766-b0ec5ba1d845","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":165,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"37f07a1d-4351-490f-8e61-0c9a83d71bf1","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":165,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"a41f9808-ad06-478c-b000-049b0e907ac9","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":165,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"1e682226-0112-4d79-b375-b39d0b2757c3","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":165,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"8faa4786-7e88-413a-96a0-c251792261c6","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":165,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"787637f5-4ca2-472d-b5f7-ffcf246c8f97","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":165,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"df11b191-ece0-43e7-a03b-f7be02ea628a","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":165,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"45844821-b220-4176-b795-5b486a0f8edc","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":165,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"0a3045c0-7008-4f4b-b5fd-7d590573b8ff","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":165,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"5253ce90-76a4-4cdf-b8b6-af24ed3772e2","block_type":"box","text":"positions in its portfolio (","page_number":165,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"380930bd-a10f-40a4-8cc3-4d4b455f5376","block_type":"box","text":"i.e.","page_number":165,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"830a3f12-d4d4-4c2a-b25e-95c9b056c87d","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":165,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"07114595-4c0a-474f-a7a2-942a9425b129","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":165,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"2198e67f-5a71-46d3-b268-b912b1dc3701","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":165,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"4dae94f2-f182-4ad2-95ba-7f6fbc92cfb3","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":165,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"08d18b6e-deb1-4141-9b4b-afe9d7c3178d","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":165,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"a540f823-3e5c-4aee-97bf-dd4bd852e43b","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":165,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"4269f406-9d63-4c56-9b9f-0b5f82cac475","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":165,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"a59c90c9-0d68-4032-8bff-5a1c1026b2dc","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":165,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"9d8f97d2-646e-4216-b46b-00eb491ba152","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":165,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"79030028-1cec-448f-b3aa-fdc6fc1e4d06","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":165,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"77c0dee0-f53b-446f-8b4e-e1b00afc5774","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":165,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"4f0f45a5-40aa-4219-906e-184669ee7366","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":165,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"2e930fb4-5edc-474c-997a-6c15fd304133","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":165,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"0c70d932-a386-4aeb-9430-6a6509ea4a40","block_type":"box","text":"II-134","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"534ecff5-22ff-40b1-bf12-80d72b9dd342","block_type":"box","text":"NM1026U-5978945-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4d60db95-5a33-4e06-96b1-1da85ba60ccd","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":166,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"10e040d2-7de2-4352-a92f-d6b12ce49fdd","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":166,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"05746c9a-99bc-41d5-97c0-c42acc81783f","block_type":"box","text":"capital asset.","page_number":166,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"623ae480-95e0-4127-babc-4d185f08781c","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":166,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"e2a84b5b-b09c-424d-a1f5-9f92786a52f0","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":166,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"e069200f-7d04-4521-844c-17d64fa4ba29","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":166,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"cd7d241c-3a90-46f9-850c-854f58db1a6d","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":166,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"bcaeda67-cc1b-4968-b963-0482b82c02b7","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":166,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"c6c64118-875f-45e8-bc76-3f97f23e3877","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":166,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"6cff4d4e-d63e-4e59-9e5d-8f80533000da","block_type":"box","text":"Fund were to invest otherwise.","page_number":166,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"d6de3e0b-e209-4840-b117-b12ef7ff0c3b","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":166,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"1ff51a04-b0d9-48db-9b1d-176b9f1eded5","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":166,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"ec3641fe-531a-43eb-81db-6194b29e3d0c","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":166,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"4cb92b80-8bbd-4194-a25c-c58c18b5985a","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":166,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"19264014-492a-429f-88ce-d608b26222dc","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":166,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"7a756548-e70e-4434-97e6-e2a0e7eb5766","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":166,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"3e58ae62-a551-4821-a5ce-c09c743fa0c2","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":166,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"b21f05fb-4785-400e-8d65-d6144d037911","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":166,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"da4344a1-3c57-4fff-ac03-cbe3d42b838f","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":166,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"460c67ca-6029-4821-b247-923217a39e7f","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":166,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"d0dc9e5e-6619-4c53-a9fd-f6637230eedf","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":166,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"23727741-e4a6-43d6-8389-4cf5910fa08d","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":166,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"e6538b66-501d-476c-b46c-4cb9681e33ac","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":166,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"cd84ecf6-def1-467f-8add-bb829d4f2964","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":166,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"58d26715-3b0b-464f-b552-d64723d35dbe","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":166,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"4cbf3d12-c95d-4bbf-8848-c3eccc82b325","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":166,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"719b2608-254c-4bf4-87e3-1a1cef93fcee","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":166,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"a23590e1-0acb-41a1-8aed-80c3533538fb","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":166,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"9574b160-e185-4de8-8e2c-cf107523f766","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":166,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"d69e0b51-1d1a-49fb-8a63-795e238daca7","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":166,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"40d23e91-371f-49ad-aab7-2fddcc35093a","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":166,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"10d1b725-dfe1-4027-a90f-1bcc0e934d55","block_type":"box","text":"PFICs.","page_number":166,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"f984f22c-e32d-45c5-90ab-8c022fb1c7cb","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":166,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"34bc1325-41df-4bfd-badb-e9f11cf9500c","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":166,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"5777890f-1037-4366-8b9b-82b7ca37a09d","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":166,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"497e39c4-5668-481a-89b3-d80e744f6d27","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":166,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"920af11e-879a-4cf1-a6ec-90ba6613f1f7","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":166,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"587da1ba-3ddc-40c8-becc-866675565b02","block_type":"box","text":"difficult or impossible to obtain.","page_number":166,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"6de4b373-efee-4c79-af0b-8015c8d6ea44","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":166,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"8fabfee7-120a-4903-8e27-3b56eabe02ba","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":166,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"43ee6f29-19e6-4b58-a2f9-f86abebc9199","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":166,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"639954f1-18c3-4c41-94c0-4da570d55489","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":166,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"da0d11d7-0146-404a-b22f-10f77dfe746b","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":166,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"c08f175c-b516-4d4d-9f0a-b8301e23a232","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":166,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"4be45b50-305c-4cc6-9254-b15c82395363","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":166,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"c295afc3-f401-46ec-84f2-03ffa3162543","block_type":"box","text":"Municipal Funds","page_number":166,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"1945ebaf-1c23-4452-a952-e174dc6b0fba","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":166,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"e4d65720-802f-43e2-9d07-90acfdf3362d","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":166,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"1d7a8604-33d0-4dd6-bf79-a3f441712569","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":166,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"c5fc5686-215e-416f-9778-b0a5f7fae8e6","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":166,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"910c18bf-6e9c-4034-a4b0-389ba3a0c268","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":166,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"4659610b-1fdb-457e-8c57-d83168645974","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":166,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"3b28b56a-1c4e-4b79-9b60-c20e42270631","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":166,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"90e246fb-e169-4d17-af82-fdfeb756571f","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":166,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"ad54370d-9b9d-492b-b452-5a047982a4cf","block_type":"box","text":"II-135","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0401c67c-3e1a-42ee-a7d5-ccc39ebe37b4","block_type":"box","text":"NM1026U-5978945-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"06d64324-43dc-4a85-a304-879f0dd5c42f","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":167,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"695d1639-f54e-40c3-b137-9d0806d45f53","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":167,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"21653ff4-dfd1-4158-93fa-cb0a4703ffde","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":167,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"dc356a07-6aa8-4aaf-bfff-60d7d993a29d","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":167,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"52f97f12-4299-42ae-9d1b-bb75938ea88a","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":167,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"8a9a1c91-7c31-4227-9a97-d6ba8fc5664c","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":167,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"771f6da3-201a-456b-ba6c-516e9d674810","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":167,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"43bb24bd-6340-4699-843a-baf6ed3b3ad8","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":167,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"092d927b-29f4-49d4-9dd0-9617ddbbbf16","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":167,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"26e9b76e-b064-4dbb-90e1-100efeaf9071","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":167,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"17cc9d9c-f5ae-4718-b091-94cac96412f4","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":167,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"70806b53-22db-42b0-af88-8b1b6725c9f7","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":167,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"a07a5973-f12a-45d6-9a2e-6a3b1493fa04","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":167,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"f38760de-9ac0-4abd-819b-8ba54f1c9d9d","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":167,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"38356fe3-dfc3-48bf-9a36-334c4d238e3b","block_type":"box","text":"constitute exempt-interest dividends.","page_number":167,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"611a7f42-ef75-49cf-915c-f390d3ea530e","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":167,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"754577b8-2ab9-4e58-bce3-333010f0b84e","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":167,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"8d0919e5-5a55-445f-8a06-6628c7f02e36","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":167,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"94a71f08-3a29-4c92-84ad-ba135455d7d2","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":167,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"f466c897-5c66-422d-b95e-3f992713a419","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":167,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"37db4cfa-24d5-4656-90fb-5f7f7b15b079","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"49acb2dc-c7fe-4fc0-a116-775e5818307b","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":167,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"328645fb-367e-4a31-912b-29598a9908ae","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":167,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"ba868a9a-980c-4059-bd17-03f7532d73ae","block_type":"box","text":"income dividends received by shareholders.","page_number":167,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"6a0af3fe-97f5-40be-8960-07a8a876945b","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":167,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"8a9d2a56-32da-46c3-adca-358f94c35fa6","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":167,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"43c9079a-69fd-48fd-9073-21d89bb8b490","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":167,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"511ff385-6204-4d91-9add-70ebe4db40eb","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":167,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"7db3318c-12ed-4a73-8cd1-f0a24a5fd147","block_type":"box","text":"the accrued market discount.","page_number":167,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"9539bdd9-b4e0-447a-998f-89d19ac98b0c","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":167,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"07a24e6f-ef4b-41d3-842b-b387606cabce","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":167,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"d37805b5-e406-4015-9b97-d6868734e81a","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":167,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"35015e55-af49-4084-b308-b0f89837cb94","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":167,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"5720bbe6-dc46-438a-95b8-72e08edf6c41","block_type":"box","text":"e.g.","page_number":167,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"14bfff21-d108-4c31-a545-9ff8f3e8bff0","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":167,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"cd1a7106-88d5-4a80-83b2-6b5ad95e7d3c","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":167,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"f48af7bb-d643-420a-a8e1-a6fc09b0fb56","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":167,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"9d87c976-7c36-4c63-9c61-aeff3b060acd","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":167,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"aa02d344-282e-4741-b2bc-1ce2b64dfcbd","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":167,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"0a91b8ad-3c34-4fdc-878a-6545615f4789","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":167,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"a23d4d7f-b973-463f-9428-784e2f0c52fc","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":167,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"c5e29dc5-4cde-4581-a573-e2c9843f3960","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":167,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"a276df5c-59c4-4c29-9c94-42856d1dcfb7","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":167,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"08e7ca90-99ab-4c69-bb92-afd0559bafbb","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":167,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"ea82a8ea-ae85-4b6a-a448-f6e00c836278","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":167,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"e9b4330a-e266-4c5a-b68d-fc61351936a6","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":167,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"3cdb90d0-5574-4e22-ba56-8ed29af3a4d6","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":167,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"c7a71243-1173-42cc-a279-3ac7517c85a0","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":167,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"e02c81e9-b8fe-4242-acc8-e143c4e7600e","block_type":"box","text":"within each applicable state.","page_number":167,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"72051f41-0b86-48e0-b977-ec88255f4f45","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":167,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"e7980958-ee57-414f-afee-d898ee7dbd59","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":167,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"6cb595a2-8f5f-4a64-a8e8-55222ff526bb","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":167,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"6f0011a1-6a94-4f97-bbca-f53b3e2d206c","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":167,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"db72e429-0161-47d3-bed2-d2d63fca06ae","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":167,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"60eee3fd-c858-47c6-b36d-f695b420c0a5","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":167,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"f32898e3-486f-4e14-aa00-0790e773a630","block_type":"box","text":"II-136","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d3f67901-55f6-447e-a364-16c6b3af5c00","block_type":"box","text":"NM1026U-5978945-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f5c3cf1e-fcdb-4c17-86ad-f771f2eaa9a9","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":168,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"635d7aea-3a05-4bc3-99ce-5c4f2b00898c","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":168,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"cf06c458-fb9f-4f9c-a2a3-9319947cf4d0","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":168,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"01f4e6d9-4bc8-42c1-a8a4-b862cd7a1a6b","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":168,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"e66712e0-9b79-447c-9b4d-7b477f211480","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":168,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"d6f405ec-6ce6-466d-98ae-1d724056ef59","block_type":"box","text":"exempt from state income tax.","page_number":168,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"04b07c12-27db-4d0c-8f91-649e05502e7c","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":168,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"69c4c58b-4b88-4782-8b0f-03e675193788","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":168,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"4ff6c44e-3cb4-4507-9581-f99e49b356dc","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":168,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"55b92572-83c6-4705-a60c-426b55dfbb7d","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":168,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"33523c8b-4387-4791-8261-3004d39e270c","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":168,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"c153974a-bb3a-42ea-b9f3-808cc371fd5d","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":168,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"6a74ddc3-8658-4e79-89ae-8574b3fc5a0d","block_type":"box","text":"decisions may have a retroactive effect.","page_number":168,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"f3e3455f-e340-4548-896d-3e231ea07e82","block_type":"box","text":"PERFORMANCE DATA","page_number":168,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"36e464c3-e6c8-4947-82fa-58cc2f2aace5","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":168,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"df4cc9c4-aa05-4963-a005-5930e2cd0b04","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":168,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"94882d51-849d-4ad1-91fe-c2e7fcb16089","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":168,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"888b3af3-95c6-4e30-a157-cfc38041455c","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":168,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"d7770147-527a-4e14-beb8-8582b4f31670","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":168,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"ee30a173-df18-478f-8a7e-c57f64124ead","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":168,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"5a4640d5-e40e-4e51-83a4-018c968aaefd","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":168,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"42d4a319-b7e5-45db-b748-d0689d5e1120","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":168,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"12926159-9979-4306-95a9-83b3e4d796c4","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":168,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"fbf5acff-2b07-482a-a945-6515ccb12f59","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":168,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"d12a2b75-6c23-4a19-b767-9b981312567d","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":168,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"0f549def-3d72-4f91-a7d8-f664a8ad88d0","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":168,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"a3628fd6-8625-4ca0-a0a6-7c02e425f8b8","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":168,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"44e7a452-5ce9-4d82-9eea-b10f0b29d5b2","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":168,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"f0d7f2d8-3268-4fe3-98fd-299296cf3beb","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":168,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"cc56e03d-228a-4ef7-b376-3fb9cdfb1a48","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":168,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"a52f26c7-1c75-4c8b-8d15-648db02506fe","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":168,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"c6d3bdf9-3dde-4c4c-a767-df34f9c74c02","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":168,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"068fa692-0a30-47ea-a591-14127749a86b","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":168,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"4e7253a2-e6a0-4ef0-aa1f-8d198ed37ea0","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":168,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"78c1721e-786b-4509-b107-c1a4ab784e5d","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":168,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"ed5c6d08-a048-4bb2-bd72-cf7be7a50a44","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":168,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"717109ee-6981-42d5-a415-27ad73d93104","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":168,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"c59a4e5d-ff69-4002-802d-75e2cd69e043","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":168,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"5c30f448-af76-4dd4-9ab9-ec7e7241255b","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":168,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"2b1e9c34-e243-49a5-90e7-e39d0956e83f","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":168,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"c9177385-e61d-4dc7-b5c9-8a101546f6a5","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":168,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"46074060-8c87-41a4-959c-35298912a3c1","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":168,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"0fd83655-552b-4c2a-b7f5-e075293728d3","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":168,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"0ec1d942-6f24-43e7-a840-5630de8e1e63","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":168,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"91e8d22b-9e09-4998-8d25-5277e85c8a9b","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":168,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"e8256eef-1df3-417f-a402-c88e6a9d4904","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":168,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"924666d1-0367-490b-94c9-1cd1932bd319","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":168,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"05e43723-b7e1-4d7b-b2e0-377e84ebcac8","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":168,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"f7852f86-759f-41ea-8f44-3d6a25f1367a","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":168,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"be338f19-6775-421c-b93a-6bf62ac2ac4a","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":168,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"e7b2cf1d-54d5-4b17-b795-431cb0ab0fbc","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":168,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"388c96a9-3b1d-4a47-a71c-f1ecab67cb88","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":168,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"b5d6c858-ce97-4c7b-880b-f3aa3085f5f7","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":168,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"3c9dfe13-6777-4f7b-a7e6-4d557a5a4371","block_type":"box","text":"II-137","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a9c2fdca-a7f3-4b5e-b971-c2b404240c7b","block_type":"box","text":"NM1026U-5978945-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"30e4816f-d613-4e67-8aa2-fac4188ac5b7","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":169,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"c3bf8a87-5874-4c9f-9d06-164d7a96d962","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":169,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"1cfa1579-6f44-463f-97f1-ec9a7efef94f","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":169,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"b165147c-d4bd-4519-ba8d-768f48b92bfe","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":169,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"12812db0-5378-4465-be77-9bed487aa276","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":169,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"e94790bd-b64f-453a-8378-62902c936797","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":169,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"c25aac4e-5345-4672-9ccc-eb3e03f69086","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":169,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"8f374c11-89aa-493f-8efe-f4e518366578","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":169,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"bcdd61ac-7376-4916-9cfa-df084610f0ba","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":169,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"74d26a32-33c8-4143-8b8f-b2b13ff7b471","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":169,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"234a6346-9b47-4d89-b5ee-fa297d5fb20a","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":169,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"2b5b7588-3223-4e58-ac0d-2c840aa1c2ba","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":169,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"27ec596d-0012-437f-be17-f642ee717a9e","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":169,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"ab3d9bec-156f-4d01-b83c-5d618abd0915","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":169,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"039efe71-3cb2-4ffd-9dd6-53aa7005a0c7","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":169,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"e5be15b9-f5e5-4438-93e6-13e5261449b5","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":169,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"a1f7a154-c5f6-45f8-91f0-54abfc4eb13f","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":169,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"9f7fca18-acd3-448b-9664-7eb271ee0b84","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":169,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"18ae5cfc-7093-4a73-bfb6-5048131d9511","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":169,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"cdc95c66-86d8-43a8-9515-68f902b7011c","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":169,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"74b89d44-d635-4aeb-b720-db9439cb37d8","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":169,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"f2c3e8a2-c2d1-4488-97c4-1387e5695f03","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":169,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"b9342535-fc53-45f7-85df-cf076e35e812","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":169,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"7b45bcb9-39cb-4a51-81b2-06892e88a3c5","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":169,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"fa6dbdb7-5e7c-4b9c-acef-551b9fcc2b41","block_type":"box","text":"less than their original cost.","page_number":169,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"e3c35a4d-c8c0-4951-9104-263f5cb3ecb8","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":169,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"ffd6630f-42a1-44c7-95bf-2d176d4b07e5","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":169,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"16940455-8b3f-4609-bc60-68d3adfa6a2d","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":169,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"a8860cac-0eca-4989-888e-f75862eb792b","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":169,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"5955385d-d4c3-4c45-8760-c1b8ba6a84a5","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":169,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"c7b6a49e-859e-4eb7-a06a-0c34585d7b6a","block_type":"box","text":"lower amount of expenses is deducted.","page_number":169,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"09e6c78b-ee38-4b82-9b89-a3d724f402b4","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":169,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"13af12d3-1c76-424b-8610-97ebe6df362c","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":169,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"6d535be0-0589-4faf-b2cd-10d22792a2a5","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":169,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"dcbe6982-3d8b-4027-ab2e-ca55ea86e5d9","block_type":"box","text":"Money Magazine, U.S.","page_number":169,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"62ac98cd-08ef-4e87-a37c-ee10580f9375","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":169,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"22c3bb15-22d2-40c2-991e-eaa4141b102e","block_type":"box","text":"or other industry publications. When","page_number":169,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"56186424-273a-4927-8ba5-3672bc7ed882","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":169,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"1727fcc0-63f3-4825-aea3-bb3e572a0703","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":169,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"3534945f-bc8b-402b-b792-3dfc5f81867e","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":169,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"33e99027-f222-482b-906b-ece3eea86421","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":169,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"b2bebf17-b89a-4406-a75a-83764e829872","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":169,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"f999731a-12ff-463f-8c94-a98a6e20df47","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":169,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"af329e23-7375-4b42-981a-0d65f9d049a1","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":169,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"2f44ac1a-6386-4315-a8b7-d220600b344f","block_type":"box","text":"developed by Fund management.","page_number":169,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"0918bfdb-956a-4d61-be19-7096e3b62783","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":169,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"0e0eb4f5-ec83-457a-b2e9-ec7ff97fc43d","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"5d267eae-29e4-43e5-8a15-e7fe780d11f1","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":169,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"cd806ef6-d381-4262-a5e2-547e966ef805","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":169,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"bb577770-7f3d-4ea8-8042-844340bf1b8a","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":169,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"2a84f74a-034b-4210-9dc0-fbdc5561d26b","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":169,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a3c78a4f-610d-41c1-9407-c7848f2197b6","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":169,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"242c7337-3dba-4909-9aea-fba54e01c5d0","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":169,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"411ffea3-5328-493c-b25a-ac10778fca29","block_type":"box","text":"II-138","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"eb65f85d-fa28-4b47-98e7-cc554a446a19","block_type":"box","text":"NM1026U-5978945-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1b3d1a1e-d29d-4e46-ab9f-7d435516f7bc","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":170,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"060fba36-e973-4267-ab72-89f1a4b2c6dd","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":170,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"62be3dd0-9162-442b-a1cb-88d24d716f68","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":170,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"087d73b5-9e83-4265-b5f0-f455aebdabeb","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":170,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"158d4f58-44f8-4dff-a38f-b68187d2c057","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":170,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"b108ec20-67a4-4d20-b738-d436a7a01859","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":170,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"cce18983-9e97-4e08-81b9-9ba8b46a3bcb","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":170,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"69bd9a84-8e18-49af-9ee1-b86c38132e28","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":170,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"b2e17301-fa58-4731-96e2-f29db511d75e","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":170,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"b4ee8787-2621-40a5-acbe-90235f5dfd7b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"b037c6f7-01d6-4a05-94fd-29891b690bb3","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":170,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"356a0f98-e1f2-4fda-889d-cb82d7788d5e","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":170,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"276f9883-18b1-4916-8ba2-95eed641385c","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":170,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"f4d12300-741e-474c-a38b-736c330aae64","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":170,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"bf9705b4-6080-4bb8-a462-a6d466d90a7b","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":170,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"52a33b5b-84b8-424b-ae32-1205e3954cf7","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"5fa63e2a-cd00-49f2-9afb-676e0a7a3aee","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":170,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"776a09ab-ba83-46dd-b507-939071b57630","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":170,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"f39664fd-bf0a-41ed-8954-bc1128d80acf","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":170,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"e9a196ee-f83e-495f-9f12-6a79da182dad","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":170,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"52ea047c-b491-4d5b-8f24-bd269d5c13f2","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":170,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"22827601-4d0b-4f66-b7bb-e4f71daee7a0","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":170,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"5ec56d91-c13d-4b74-b1aa-9e5a6973ad11","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":170,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"8d942a25-46f3-4053-ad64-9304ba3a17dd","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":170,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"110f5029-2251-451b-9c3d-072ac72706d6","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":170,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"0eff0256-19e3-420c-b7ef-700a61028c06","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":170,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"924c39af-052d-4b6b-bb58-a32f8ea09ee2","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":170,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"c16d1a91-d27a-48a4-893b-995fa1b147a6","block_type":"box","text":"GENERAL INFORMATION","page_number":170,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"e1459c5e-f86d-43ca-9da4-fce5e37ea4a2","block_type":"box","text":"Description of Shares","page_number":170,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"5b71c5de-540a-49c7-adbe-cf7ff44216f5","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":170,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"56f5ba8e-379c-4a53-a225-f6ed27b4104b","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":170,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"c0f7343b-45bc-402d-8789-115127f28cbf","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":170,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"f5c4fa81-6349-4c24-9253-2554bce79ff1","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":170,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"527dd961-77fc-4045-a5e7-788b1c6c794e","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":170,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"e1fb1080-2e7a-46df-982c-d8166d1c62ed","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":170,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"a91a8123-8021-46fe-b0b0-ac3ce007f145","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":170,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"7d0a9b65-8491-452d-ba0d-0b1127911014","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":170,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"78667a05-c3bd-4b13-b339-fecb38ad29a2","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":170,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"cab5b9fc-f220-4963-b2db-e775019c80a6","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":170,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"6a1fcdc6-fddc-4bdd-9831-5049693188ff","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":170,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"01f4a089-7c0b-4033-98aa-f557da46c56f","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":170,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"8ce9a110-a70a-4347-bcf4-a4b4eb97c2d4","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":170,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"372a8e56-12c7-427c-9ce0-09c4b01b91be","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":170,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"70ae96ee-6579-4663-8794-6f32073976ae","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":170,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"b788fb1e-4908-4cdf-a38e-a2c9618dc8b3","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":170,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"dfaa1b63-b630-4bc7-9a89-112bd231f0f2","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":170,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"d0475101-7f68-4d98-bc58-adc308586e91","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":170,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"fdb711d4-afbf-42fe-a139-a441a6b913c6","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":170,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"702f8352-370e-491f-89c1-d5b076ec4ed3","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":170,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"87696764-f93b-4f3f-8142-ae341aeb6d26","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":170,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"e5c42724-55cf-4f24-8192-20e0c43eada6","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":170,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"2bf09f73-d386-4e64-ae97-636321732ccd","block_type":"box","text":"II-139","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b39c3b02-199c-45ab-9300-ff8aa12bb578","block_type":"box","text":"NM1026U-5978945-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3aa5c5a6-e8d3-4592-b889-dfd8e9364e20","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":171,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"6a42f353-9de1-4b42-b964-8760af2ec912","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":171,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"3839f801-567e-4614-8c20-36b578215332","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":171,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"29f12b54-e2f0-43a5-b35a-730e7c352d54","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":171,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"65c665e3-79d6-4865-bf3e-6a4cec613233","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":171,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"768df088-1727-4c1a-8aea-6346a1ac2631","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":171,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"b7e73828-95b6-47dd-8a9a-dcfac7d0c191","block_type":"box","text":"Additional Information","page_number":171,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"224c519b-ce6b-4bb5-aeaf-9f402c0a34d7","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":171,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"b43cf9b7-d9f2-4817-8cc5-017d9b3510cb","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":171,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"44cad34c-cd0f-41de-a3a5-b90de4831664","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":171,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"5bc0ba14-a42f-4e82-a93d-a1c447682d12","block_type":"box","text":"such name to any other company.","page_number":171,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"c869092f-cce5-4240-aff4-d7aff8df9772","block_type":"box","text":"II-140","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b43a1648-54b3-4bf7-85aa-59082c16d04a","block_type":"box","text":"NM1026U-5978945-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b93d4a70-60d0-405b-8f7e-6804d08e0b37","block_type":"box","text":"APPENDIX A","page_number":172,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"355f6302-3d2f-448a-8110-07e28b0e2119","block_type":"box","text":"Description of Bond Ratings","page_number":172,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"9c6c1c9b-c08f-4924-a626-a338797225cd","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":172,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"3b4d00f8-7ff0-4e74-9f1b-9b863def1e7a","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":172,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"597be4bf-e8be-4144-84ef-3b3b8406aefc","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":172,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"5c0d249f-a110-444e-bdaf-2920194c98ff","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":172,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"4d9138a6-c441-415b-98ac-cc46f2e7ec4b","block_type":"box","text":"securities on a particular subsequent date.","page_number":172,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"6e86d873-83f3-4ccf-8e60-4bde9890cb5d","block_type":"box","text":"NRSROs may rate specific investments (","page_number":172,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"a40c9ed7-15ba-44e5-97fd-8edd86082e9e","block_type":"box","text":"e.g.","page_number":172,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"19b99101-6982-4108-a412-e08db438ffbb","block_type":"box","text":", bonds), issuers (","page_number":172,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"5153c354-3b6c-46a6-87cd-f8e98a0fcc86","block_type":"box","text":"e.g.","page_number":172,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"26601ce2-69e9-488e-a620-a8326aef67c2","block_type":"box","text":", corporations, governments and financial","page_number":172,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"5d7306fc-249e-4342-ad52-9b6d60e49436","block_type":"box","text":"institutions) and/or programs (","page_number":172,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"806b4fdb-31eb-4828-9d3e-9e8092f6ec13","block_type":"box","text":"e.g.","page_number":172,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"11d43908-5bd9-4a34-957b-67e372c58eb4","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":172,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"86a33563-4017-438c-bb33-407cd8ba787e","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":172,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"f2204ca3-2073-4166-9c77-a5804e27fdc9","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":172,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"8fe01a4b-10f1-4c1d-aaf4-80b0355fb657","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":172,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"8f8d1df7-df6c-478c-877e-d2472f1b8669","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":172,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"f090dc0b-d3a2-4d7c-8841-6c0ed66c5188","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":172,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"6c9efd5a-52d1-43d5-b47c-54a34cae3633","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":172,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"e4f56dce-23db-49e9-9b25-1cde9b511803","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":172,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"827ecc3b-1165-4427-b350-bc97ff70002f","block_type":"box","text":"security (","page_number":172,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"684cf715-a93e-4960-96ae-e16dfb1bdd61","block_type":"box","text":"e.g.","page_number":172,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"b1f30a19-3407-43e2-9336-1bc198458b91","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":172,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"b2d61ac0-0fad-4ddc-821b-7c6ab8d5f033","block_type":"box","text":"highest of the multiple ratings.","page_number":172,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"51bcafec-8794-4223-8f51-492525994c16","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":172,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"507bfd68-e6b5-4fa7-8d05-87d5bf47bdc3","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":172,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"4fa088be-8cbe-4263-a502-5638152ae112","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":172,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"4624f69d-e580-49b0-b343-34c067d68d1a","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":172,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"360b11dc-fbaa-4dab-a085-9fe078843777","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":172,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"189c9f18-03d6-4ce1-9f1f-fc500fa3973f","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":172,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"ef08f4e5-cdc0-4343-abe9-3c2d940930bd","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":172,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"5cd669ac-ae03-496a-883d-1b3fe979feca","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":172,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"57a23307-56a0-41b5-b03e-322b03f131ed","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":172,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"530fd84a-a748-4bf5-a01c-ea7acd0a7d1c","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":172,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"b3d1e5ac-9d67-4806-9603-811b2401b457","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":172,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"1b7aa572-07d2-482a-b202-710ebd62ca1b","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":172,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"df9a1f86-ccab-49cc-bc3d-246108d04358","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":172,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"b8ea45f9-da24-42be-81f9-c644cf7b95dd","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":172,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"98569377-075f-4a06-8509-583b95a17739","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":172,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"1b99025c-14e4-4cd0-a5be-1c403e7f79b8","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":172,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"8a2f3903-27ba-4cd0-bd65-1b2e287aa8d1","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":172,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"68cad856-3fed-46d5-b7e4-cb3ee4a6824b","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":172,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"e6b300b1-6917-4f9a-91c5-4fd6cd2751d0","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":172,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"fd2761b2-16cd-4c64-bc87-dd53300eba2f","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":172,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"7fd2ac0d-fd29-4d4e-a6f2-90861866a39e","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":172,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"b971f5b7-193a-462f-86ad-e62e26cc7370","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":172,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"68311162-3659-4cd0-99aa-3bad064b41f1","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":172,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"47a9d1ab-aeb7-4dba-a995-97ea61f7daaf","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":172,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"1f382738-a3bf-4afb-9dd8-345c51a6b34a","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":172,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"ac532b33-a433-4891-9e53-35a4c1912cc8","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":172,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"ead39fd0-5844-4a5c-ad94-586ae21a9010","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":172,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"8b405521-b221-4f78-b05d-d4e8f56f3f64","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":172,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"dc86b903-c896-484a-966f-977e4218e581","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":172,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"3d42a6f6-cf24-496b-9c6c-8bdec5021985","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":172,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"b831f461-ef59-4759-bde8-7451f45cb38c","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":172,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"d3969f38-53b7-4781-af03-0665c4bf46f5","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":172,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"8c31d713-78e2-4a87-9d57-734f9f028f82","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":172,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"6d23303f-8b50-4003-b9d9-6c1cf486d2db","block_type":"box","text":"upon standard sources of variation (","page_number":172,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"fd367047-813e-4f87-94bc-4b90e40b1d5e","block_type":"box","text":"e.g.","page_number":172,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"97e6451f-b1d9-401d-be1a-b8535ce8599d","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":172,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"1d2222e9-78fb-44bc-98dd-bb18148f95db","block_type":"box","text":"A-1","page_number":172,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"de6d30c4-6505-478f-aadc-cc6a156c24a5","block_type":"box","text":"NM1026U-5978945-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b5d8ea6d-293d-4741-8b40-d861aa31d782","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":173,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"2194e044-2584-4548-ab94-532cf5462b65","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":173,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"55a6d899-38d1-44e3-817e-f3553f9bb928","block_type":"box","text":"e.g.","page_number":173,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"1f2cfd21-d284-47b9-af21-5ddac58c67df","block_type":"box","text":", equity indexed), absent","page_number":173,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"41ce781c-7843-4c3f-8fc9-01b236ee204b","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":173,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"d404e541-20b7-4446-8556-8f6f5098a387","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":173,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"68391844-f4f9-47f9-ab1d-c5cc83bec162","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":173,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"784ccc90-5771-4697-84ac-836343ce5b61","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":173,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"9b4e5615-7eb5-49e7-86ab-fc7f0c43fdc5","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":173,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"b1426611-c2e8-4465-80d5-a3ad425ac5e1","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":173,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"5fc87566-5ae5-4f67-978c-3c10216ae0f3","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":173,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"caac0f5e-dd04-47c3-bf72-aa62cab5cfeb","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":173,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"565f5ed8-71f5-47ec-83b9-264c8597bf40","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":173,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"345ca8c4-bea3-4135-9670-adf6931bac78","block_type":"box","text":"i.e.","page_number":173,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"263f6f54-acb5-418f-b42c-a4821d027d00","block_type":"box","text":", ratings on nonfinancial","page_number":173,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"2d081410-463c-4d7e-b232-aa5bbd66376b","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":173,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"54f635ac-6502-497d-ba82-07f5d5ea61e4","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":173,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"c61e1158-06c8-498f-b737-c7758512a376","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":173,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"b040f56c-2e2d-4f0e-a282-792d4f50d8ee","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":173,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"2564e151-24de-44f2-9ad1-1c2ff1e6d0e4","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":173,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"615c3d47-dba4-48bd-b997-ea699c873b50","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":173,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"6bece384-4ba0-4d3f-a14d-455468bb872e","block_type":"box","text":"of time.","page_number":173,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"30e0cf63-c01d-45b0-b042-55d880cd59ee","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":173,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"7cbf23ce-f961-496e-a54b-2fd820592e80","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":173,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"d4cfb647-a8db-4217-8e3b-73df2d7f1960","block_type":"box","text":"risk.","page_number":173,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"62eae626-a6f4-4e79-9d41-f1dfeca48642","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":173,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"8b1b4870-73ce-431a-bcac-a73f1dfb8ea6","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":173,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"de0222de-7a4d-4fb5-bdb7-0188b434968d","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":173,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"61ecc454-456a-4308-bf58-dc1bd95d4d41","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":173,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"b4087753-9374-4c88-958c-ff013ab87be8","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":173,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"0a9dacb1-9b04-438c-af2d-82dc39016072","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":173,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"b006e5e4-4efb-443b-82e6-03268defbbfa","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":173,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"54c78c6f-1d82-41f4-b697-5c5783ca4848","block_type":"box","text":"credit risk.","page_number":173,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"5a744339-af0e-4ade-ad67-cdb114398aea","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":173,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"87e612fa-aa7a-47cf-b2a4-5f632c34e22f","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":173,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"f32e2033-dcb8-431f-860f-bf5e97471154","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":173,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"cf00cd8b-54d4-406f-8dda-19fe93051919","block_type":"box","text":"of principal or interest.","page_number":173,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"582554d5-66d5-43a6-8c55-b3b15fb62a5f","block_type":"box","text":"Note:","page_number":173,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"30bc3ed9-07cb-412b-a189-a74739cfbc49","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":173,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"553b0fa9-c6d1-4dd4-8321-5eb18c8357e9","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":173,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"5d287420-04ff-47bb-96c3-7f5438b8e0c6","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":173,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"bad2db14-f6d1-401a-9530-07451238d4a3","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":173,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"3bf35d14-dcca-4274-b00d-3de314c44d92","block_type":"box","text":"companies, and securities firms.","page_number":173,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"306b257b-4c5f-42f6-83c2-69840c995fee","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":173,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"2d51744b-45a7-4e93-95d5-977809d94204","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":173,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"f3f3098a-6dbd-4e9e-ad02-0d0ffafee7d2","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":173,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"1578e76b-a4fc-4bef-aa42-f2ea94c3b903","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":173,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"b38fd263-f47c-4e87-8e35-d0e4ade0c5bf","block_type":"box","text":"that security.","page_number":173,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"50482b99-6c38-4446-92f6-2beeee18790a","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":173,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"59e04ff8-940d-4be7-8295-cb1028541434","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":173,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"7e1a1d72-22a0-455f-9f43-82b4de80106e","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":173,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"e499aed5-080a-4883-bbfd-a0c57094c507","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":173,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"a96be070-2281-4940-9a26-ef363d0ef887","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":173,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"4439eb09-4259-42bf-9a48-ee0893335912","block_type":"box","text":"categories.","page_number":173,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"28bd11c4-7532-4a7c-aa97-1e906e7dc12e","block_type":"box","text":"A-2","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"9911584b-0a43-4a8f-aeb8-f17f5af561aa","block_type":"box","text":"NM1026U-5978945-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"370925db-9488-4186-8775-d4cfccd691ac","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":174,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"6b7a15e9-1624-4cb7-98a0-b5006fb5429f","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":174,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"73ea2954-8a3b-4ae5-adf7-0b2c911e2763","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":174,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"76d23aa4-7f64-446b-938c-226737ba1f62","block_type":"box","text":"an issuer’s self-liquidity.","page_number":174,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"f64005a2-a32e-43ea-9cc9-3bf86238b05c","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":174,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"78062a04-4769-4f3c-ba2f-1ba34298f0ff","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":174,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"57bdd487-1b79-48d2-bafb-3d601ee5cd66","block_type":"box","text":"MIG Ratings","page_number":174,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"b1fa57d5-f101-4a37-837b-b76b47093c63","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":174,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"e11f0b7e-1310-4797-b9e2-d3105664cc0f","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":174,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"45296ccd-d44d-4787-93fe-616ee34ff095","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":174,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"8e455113-e12a-4b75-b80c-1593a811a15e","block_type":"box","text":"MIG Scale","page_number":174,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"bb2b898d-9ce1-4557-ad3f-393255277c12","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":174,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"0cdbce2b-589a-46d2-8bae-d84abe13e128","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":174,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"6a895aff-7aed-4884-9f2d-a03129ddaf18","block_type":"box","text":"refinancing.","page_number":174,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"ad8318f5-804f-4b0d-8e97-cb790f42a786","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":174,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"01e7951d-245f-45a9-b7c7-a1bade03796a","block_type":"box","text":"large as in the preceding group.","page_number":174,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"b76b3a34-e655-41a9-bc42-d214c5d74099","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":174,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"250ff06e-f28d-4ff9-8d0d-a9d4f0c6145e","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":174,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"04d47e4c-a2ea-4802-9424-a04ced80de0f","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":174,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"285b9f5b-b4d9-4281-ba23-ce77c3a47bd0","block_type":"box","text":"lack sufficient margins of protection.","page_number":174,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"3c077bae-a7c1-4630-b07a-cf4c5d3474ef","block_type":"box","text":"VMIG Ratings","page_number":174,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"33e948a8-b31f-4bff-832f-bcf2bebf8887","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":174,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"52744297-e79f-408f-9044-0f2af39e60b8","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":174,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"65641a75-6969-4e24-b65c-1fd7dae44bb3","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":174,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"e6e0aa39-80eb-498b-a3a7-5dc08206bfbc","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":174,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"dc5e198b-3ea3-496f-89f9-00ecf2b2f4aa","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":174,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"075a2379-0fd3-4878-8f49-b3c6b96cc6c3","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":174,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"d62bbd0d-79dc-4d4c-bff3-2acbd6c1ca80","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":174,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"46f6e6b7-d4ad-4db1-b757-68b39c81349d","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":174,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"80bb905b-911f-4203-ad80-ab54a6871b11","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":174,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"ef257bc2-a268-4907-b89f-0e3b37b4f971","block_type":"box","text":"grade.","page_number":174,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"caef2005-5ae9-49d0-ba01-94d442bdbde3","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":174,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"3d278eff-c57c-45e5-8285-e70b1cf56020","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":174,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"83dd057d-6c2f-4abe-a670-e7a38541aaab","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":174,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"5b8ae818-ac8c-4443-b615-c8710d735992","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":174,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"e3aa55b0-f5d1-4841-a911-3c01991e0367","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":174,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"fb1f5c53-7f04-46ec-93e2-5816638b342d","block_type":"box","text":"liquidity of the corporate obligor.","page_number":174,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"05c3c8ef-5b32-4749-90dd-2181800c13eb","block_type":"box","text":"VMIG Scale","page_number":174,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"ef31dea2-9280-4501-929f-29d3d193a89b","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":174,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"c1400552-6592-4efc-815b-63c0f4e1732f","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"3feacca1-e6e9-401c-be5b-0fdee6c197cb","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":174,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"ce6fd1d1-ec77-4534-a839-11e7527a3ae9","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"b12b7196-26be-4356-9440-c8c4b9874208","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":174,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"80d2a49a-8ba5-490c-8124-0865d1521716","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"6996e89f-9b6e-4b79-9040-d5c10ec754cf","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":174,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"7d69c8c1-2f7c-49f3-b729-6589360b8a9a","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":174,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"ff23191a-244a-422b-80c3-3ac7e0a6f7e7","block_type":"box","text":"may lack the structural or legal protections.","page_number":174,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"b6607027-db47-46c6-b2c6-ea054206bfa8","block_type":"box","text":"A-3","page_number":174,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c7a03bcc-2619-4c42-bd03-70f86abfaa9d","block_type":"box","text":"NM1026U-5978945-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7ff5de83-53ff-4f64-87e5-bd83af3f3aa0","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":175,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"1a09b21c-8642-49f1-a7f2-cb7d312bcbbb","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":175,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"27eaffbe-ac77-40a3-a4b8-fbd6a68d8a29","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":175,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"7e61889d-6516-4755-955f-f4da687b55f6","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":175,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"9e419e54-7305-4f56-b839-24cc8936f988","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":175,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"483fdd06-9f90-4adb-bf7f-0b023680f211","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":175,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"bde9486e-db95-4f52-88dd-7d1b94ce005d","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":175,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"4e304488-e98d-49c6-b5c3-b183e594b611","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":175,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"7505d3f0-2953-4344-a8c9-a483fed2b384","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":175,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"82546c2a-86f6-45b7-a383-be91e7ae6336","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":175,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"aff6e7f1-46cf-4850-a464-00de68d42516","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":175,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"6e5c1fe4-0c94-4aff-886e-9941c6177919","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":175,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"0ccf7cf2-b946-46c5-9dcf-4d06a3a15b27","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":175,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"7fd7d22c-7a9b-4111-a9ab-c5beacec0411","block_type":"box","text":"from these guidelines based on market practices.","page_number":175,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"1680d766-579c-427e-aad8-af8eb32a6a36","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":175,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"202af603-f55b-43fe-b68a-cd67cc80ee07","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"529e4152-f380-4be7-8604-95ffe13b5226","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":175,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"bf18a709-6ee0-4ffa-98e7-db666d7cc0a4","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":175,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"723ec9ae-1e26-4f7d-ad66-1d6eea363dbc","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"fef17106-4580-4a7b-8349-e71b4a842844","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":175,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"b299d372-c71f-4c16-850f-aefb7ec5b1f9","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"02192f1a-0de3-4a54-b055-37dd82a3eab6","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":175,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"8b9616d9-794e-4ee1-9377-4176b9295616","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":175,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"651ad8a3-f189-4d5f-99a6-912bad2be9e7","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":175,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"3d92e95e-be12-4642-8f7c-95659ea5f0f0","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":175,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"2c9af282-61ed-4c82-a1d4-7f574f1147bb","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":175,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"ea3741ff-f42a-4c9f-bcb3-b819cbf07b48","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":175,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"6dd629c9-0687-4949-88ca-3338c128b90a","block_type":"box","text":"obligations.)","page_number":175,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"eeb8cec2-fd40-498e-90bf-ebe00ee377d0","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":175,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"27400e9e-1e50-463d-96dd-a82ead078d52","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":175,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"7dacdfe1-f6e2-4a32-a116-daa82590711c","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":175,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"8aead699-77ad-43f1-8857-5a617b39e006","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":175,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"e52b2953-64c2-4865-bd18-9c94f877895e","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":175,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"80221eae-f5aa-4b27-b55e-dd6aafe9ff85","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":175,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"c537f0f6-78f9-4eb8-80c7-e6817411c527","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":175,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"c0e474bc-447e-49bb-bce6-0cc576b58edb","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":175,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"e18ecbd1-13d5-4b59-a9f7-f5aa64524864","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":175,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"9492ef8c-2684-4d89-be9b-3ef437c263f7","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":175,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"11fee938-d2b4-4206-bef1-33e2d43b3fa2","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"611d72e5-f742-47c8-b1d6-6eb92c160b7a","block_type":"box","text":"BB,","page_number":175,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"2142a541-84f6-4180-bb0f-0b797cfce177","block_type":"box","text":"B,","page_number":175,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"a11bc6da-78ce-4cff-ba69-e6b00f19a04c","block_type":"box","text":"CCC,","page_number":175,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"dc1fb4ae-4262-4bb7-8d91-427964d254cc","block_type":"box","text":"CC,","page_number":175,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"a7597c63-a6ba-43f9-ad21-fd15caa30f35","block_type":"box","text":"and C","page_number":175,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"5a13e302-bd82-4e9b-a9f3-ec06209897e5","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":175,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"aca93c56-89b6-4143-b88b-fbb0c569f356","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":175,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"801f335c-b228-466c-8080-c468381f418e","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":175,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"bd1e50dc-e18c-4fe2-972e-90912a83c3f7","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":175,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"e1377eb3-1681-42d0-8151-8d31a7649d17","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":175,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"198ee84e-79e8-41b8-8fb4-cb0486d7104b","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":175,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"bba14590-a7cf-4dd8-aea3-dd31cea35866","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":175,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"da99118e-3431-43d0-90e3-d2079a925f24","block_type":"box","text":"on the obligation.","page_number":175,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"cdaf71c2-4f26-41ef-9088-5b4ebeaa6a76","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":175,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"547f2e49-6990-41f0-98b7-c5a4b2e01c74","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":175,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"2318b7ad-fd4d-4079-a558-0b78064bfd9f","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":175,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"dd32fd30-7588-4e5e-8f39-26032c785718","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"c880346a-4795-4e6f-a57d-c41574dcc79d","block_type":"box","text":"A-4","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"9c1aee6e-aa0a-4842-96ca-64da0f250fef","block_type":"box","text":"NM1026U-5978945-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"39468a65-fd52-4716-ab44-ad933c7deb74","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":176,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"b8c4c224-37fc-4d58-8f7c-581e98ff1e9d","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":176,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"76c6d4ed-3b62-4915-9f8e-897ab9c33d60","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":176,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"f6c1b599-0427-4d91-9f7b-0674c33b00c1","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"3eff7de7-844a-418d-afd9-ecfe857cf985","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":176,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"98406707-ab63-4327-8a55-f4ea69eea8ab","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":176,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"232df971-8856-47d6-bafb-6d74276bca28","block_type":"box","text":"anticipated time to default.","page_number":176,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"d7633735-7ffa-4d05-afc2-655999cb93fe","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":176,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"294149e1-f7b5-480d-bc2f-68e1b2ed224b","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":176,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"5e33a6c4-ea10-4018-89db-d1744647c285","block_type":"box","text":"higher.","page_number":176,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"78f1fc3e-c0bb-4f70-aae0-a9a24905b1a1","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":176,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"44f0926d-1259-4447-b699-73cf0b57d4b7","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":176,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"90094943-c3a3-45b6-8070-83435f8ee595","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":176,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"a5401a5f-3233-460c-94c9-b4d82b123b86","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":176,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"85a0f88c-c3b0-4539-a33e-3440f644d5d2","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":176,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"de7f7c17-c247-455e-b0d7-8a8f6226f3e2","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":176,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"d4c7fe74-17cd-4e11-8eb3-22a53126c5f4","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":176,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"a1aee565-3d1b-4150-992d-1635ed405d24","block_type":"box","text":"restructuring.","page_number":176,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"709652db-7cb0-4bfc-97b4-808284cf2ff5","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":176,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"4b34fad3-b4c5-4085-be1f-42a14ea58624","block_type":"box","text":"standing within the rating categories.","page_number":176,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"b77cbe7f-e31b-4a04-9dd2-4825d973fdf2","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":176,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"7d6efdb5-de24-4ecb-98f4-f1315b78021b","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":176,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"c9c7a50b-f229-4dbe-bfe2-f63535a31dce","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":176,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"fb5a2977-19a5-487d-ba2f-af489f1733a1","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":176,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"7ee07754-d260-4afe-ac72-5722e44ed50c","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":176,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"8d5a9739-eef4-4593-840e-2954327a53c5","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":176,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"6a9126a9-82f0-457f-ae5c-d70bf97e8d30","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":176,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"5c5c834d-c172-4918-a306-0894074f005c","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":176,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"913db89a-a16e-40c7-95e7-fcaab26c300a","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":176,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"e739f026-d26e-47eb-9452-61dbdb978585","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":176,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"89c94099-387b-46ee-829e-19c168674bdc","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"d90dcdf5-6a0b-4c28-9bfe-d4f3b17427bf","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":176,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"f238c177-3c8b-4f55-9e52-893c573e436e","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":176,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"d55739b8-be41-47d5-8773-9bf8e2003574","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":176,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"91f50943-5c70-4a18-b58a-1d73109d64eb","block_type":"box","text":"financial commitments.","page_number":176,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"cb75e954-cab8-4f18-8389-607edd4ff2d0","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":176,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"12a99491-1fe5-4c16-818b-82932e184bfe","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":176,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"917bc36c-0106-4296-876e-89464c3a7005","block_type":"box","text":"commitments on the obligation.","page_number":176,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"a1180660-cb80-45ff-a0d7-2fefe922d875","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":176,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"57dce3b9-574f-4e9d-beb4-fca99c758379","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":176,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"eeafaf8d-0266-4865-9f59-1b3d45e21a73","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":176,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"8673e59a-be56-4133-a5e5-da7fccb471f2","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":176,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"cd7bc243-ca31-4c3d-9436-573904c9574c","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":176,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"067df773-89bf-466e-af22-51a7b0583932","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":176,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"ac527c1f-34a0-4600-9b55-e8031725b325","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":176,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"dc091de0-20ad-4e6d-98f2-543f0a6b1bf7","block_type":"box","text":"debt restructuring.","page_number":176,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"9fca18c1-c346-4cc0-82cf-4a51540dd305","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":176,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"da5693ee-7ad8-444a-bd59-1c80573f15fb","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":176,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"421022cc-0ebf-4dc5-83ee-f6de7aac3e9c","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":176,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"e411fca5-79f5-4c07-b74c-3f1c75ab624a","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":176,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"ea0922c1-cefd-4de7-8915-367af58b84b7","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":176,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"d7a7ea49-2f26-4387-89a6-4fb928abedb0","block_type":"box","text":"A-5","page_number":176,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"bc12a225-2d1d-4a91-b9bd-02e0e2eb32e6","block_type":"box","text":"NM1026U-5978945-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"39dcff13-36f2-4ba2-88b4-b3a358509474","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"c2855b0a-6406-41db-8566-33695105afd9","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":177,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"535d88e2-b4fe-4c84-a825-b33785f2ebcf","block_type":"box","text":"as a note; and","page_number":177,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"ce3d1c52-a3ac-4519-b30f-e14ec072fef8","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"9f5fc39f-6d2c-4e40-a330-f094a4b81e09","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":177,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"5debf1f3-4883-4a5c-8d0d-5c08a4b7716b","block_type":"box","text":"treated as a note.","page_number":177,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"cc2b6b8e-d73d-4500-a64c-adc2c178ef68","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":177,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"6a484194-371c-44d6-a749-9d736c4a7e36","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":177,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"5fe6f692-282e-48f5-a64b-1cf6989eed35","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":177,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"11262a88-6299-4a1a-8238-b549a08c3de8","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":177,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"8ab73359-ea3e-461f-80f8-9391c854b69a","block_type":"box","text":"economic changes over the term of the notes.","page_number":177,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"b3e22257-e7bf-4717-861d-011e28e7c5f6","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":177,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"77185cea-1525-445e-8cc7-e01c91075b8d","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":177,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"fd88464a-e7c1-4cc2-9b55-e0ed320dcdf7","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":177,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"8b28ca53-45ed-44ec-b83d-f5f80e673718","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":177,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"5c571bb7-70cd-4ed7-b2e4-1e77cceac57c","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":177,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"00964059-c054-468f-b4c7-c3272ecb9131","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":177,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"1ba03af7-67fc-48f6-8ed5-09356aeb5f8d","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":177,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"d5fa59d9-9b8a-42e0-a21e-344b931f21d8","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":177,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"80986b83-8c99-43d4-9de9-555c67043188","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":177,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"430945d6-6782-409c-9d43-ca088f9ec191","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":177,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"a9e68f96-32d2-4a04-9313-4a0a5e5bf2f6","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":177,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"17357a81-545d-47bd-adf8-74951f99e384","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":177,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"454d1812-d333-4cf8-b04a-0bb9fe68018b","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":177,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"959dc207-ec99-477e-9866-2b5434007ebc","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":177,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"f8578079-a59d-46eb-856b-b5b2153a0255","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":177,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"f0d0355d-a48e-4495-bd9b-e7c2af4f79ae","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":177,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"21087e61-a6b5-4459-a6f1-8f5ffd79f7c7","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":177,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"839b22bc-d4c7-4466-abf8-1d764762dea6","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":177,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"16bd46ed-2495-4569-a73f-27864aaef5f6","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":177,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"48018adc-ce7e-42a7-ad14-458814cf5c0c","block_type":"box","text":"receivables or other financial assets.","page_number":177,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"7cbb0f78-7a3f-46b6-9bfe-d4b31c54aabd","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":177,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"328d9407-c3df-4bdd-81b9-c1341e6b14ee","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":177,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"a788587c-a423-40ab-9c7a-564bc59a97d6","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":177,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"b9a9b13b-e1ed-4d38-8167-3dab54c64c3d","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":177,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"5d8871f4-abc9-4711-951e-fd817d22990d","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":177,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"1d16a930-bd5d-4413-885b-486eb20a9ede","block_type":"box","text":"occurred.","page_number":177,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"59de0664-acbf-4f5e-883d-4bd342b453cd","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":177,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"0b9c2b64-a955-4034-bf17-24c70375756d","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":177,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"cf2f197b-3d7c-4b69-a161-285cd9012fd4","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":177,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"addc31b0-a00b-447b-bcef-6b88fd8caf6b","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":177,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"7c0cf04c-14ff-401d-8cf9-9b2f0b7221f7","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":177,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"f1692b69-6c3a-4669-a434-c76efa514187","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":177,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"0848d824-b0e8-4282-b273-baab19023218","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":177,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"4c0599f6-76c1-4b0f-b355-95f01ac2c802","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":177,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"aac034ca-6e02-4401-8bb6-4f97d3447801","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":177,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"dc945756-c91e-431b-886b-6a540faed01d","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":177,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"8d7353a3-30df-4c78-9676-2292d70ddc34","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":177,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"d4e113d1-00a6-4902-8beb-7bfc63de8ebe","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":177,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"d7bdd212-b2ae-467d-a82d-d5370c974733","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":177,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"09421248-7b44-4020-a42e-2ad04447e50c","block_type":"box","text":"i.e.","page_number":177,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"5e197866-629d-4596-80ec-8849035733b7","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":177,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"a982fca1-b4fd-46b7-aa12-29cf3bac7b15","block_type":"box","text":"the obligation’s documentation).","page_number":177,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"5a20a74c-02b2-4aca-8086-d48af8805bee","block_type":"box","text":"A-6","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"4d41cf58-1ae5-45c7-87ea-ee3e94790c49","block_type":"box","text":"NM1026U-5978945-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3d90890b-bc30-4cf0-920d-7b48594260cd","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":178,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"e6175422-3e3d-4924-8f87-79aa405c2246","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":178,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c8e81e70-dbfc-4afb-a745-74dccc1a8a4d","block_type":"box","text":"agents in the form of a rating letter.","page_number":178,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"8762fb2f-2ff8-44e4-8154-cc49ecd2ecec","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":178,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"d053207d-08bd-46aa-95ce-f142706e5f6f","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":178,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"73c85971-eaf2-409a-924f-da45225a4199","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":178,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"4a7d19de-f9a6-4373-bee4-d0594ff1bc71","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":178,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"598464b9-2026-4320-9943-816a2ebd7ed9","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":178,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"92878f2d-0638-46ab-8983-d5b5096cc1a7","block_type":"box","text":"e.g.","page_number":178,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"060b1347-56fa-4b23-9c3c-c1966e1925ea","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":178,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"73ac9a20-613c-4171-99f3-3a5773d89929","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":178,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"32eefd76-dc45-46c4-b729-d08ef2303a98","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":178,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"2e0b2a44-ea3e-45a3-a5f5-81e802657429","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":178,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"e456f825-2c2b-4b85-9dca-edabdf5933c2","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":178,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"b97e0b1f-5488-4557-810f-024d07661677","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":178,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"17f185de-8d7b-4e8e-a99c-99f09d5c649b","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":178,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"ff353358-5e1a-4a07-91c1-cfed3163ccb8","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":178,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"d5d29740-de61-4d78-8bda-054c38fb1275","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":178,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"82b3d618-81c9-4c1d-9b2d-f00907ec5b14","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":178,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"c7e6832a-ebc1-4cc6-8dbe-76ad0537de6f","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":178,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"391128af-0c2f-46d1-9f21-80300e3b4bd4","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":178,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"e7c95003-3db1-4bbb-b28f-faf5500a2ad2","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":178,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"2882b9f0-023c-427b-bd70-d106708f08b2","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":178,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"386bfedc-d07b-4d24-8efa-e592daf4c326","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":178,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"c99a6245-2815-4d37-9719-2eee4412cec6","block_type":"box","text":"Ratings.","page_number":178,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"e8cb1295-93d1-4de8-93d9-21c97a9269c6","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":178,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"8973fc5c-fcd9-4b52-92ab-c4a0f537b786","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":178,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"188033cb-b520-4380-859f-d40587a84d01","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":178,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"fd5ad32c-377a-4a7f-b5df-3398fd4ba0cf","block_type":"box","text":"obligation ratings.","page_number":178,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"c24f4e01-37b1-4ea4-8785-8b1e0f0f38a1","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":178,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"857e2efe-3609-4959-85dc-324b66d91925","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":178,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"dc213e51-f554-437c-b40b-6abaeecaf55b","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":178,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"dd96f807-0a6c-41c2-a0f1-0a9f72c548de","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":178,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"40827833-4a18-4066-ac67-dcdca2f0fd00","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":178,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"910a3930-4729-4a2e-96a9-e4e32ab74cea","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":178,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"b5da7979-b710-4f62-bb96-c9d0c16aa1fa","block_type":"box","text":"to foreseeable events.","page_number":178,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"00601bb4-7183-4851-9cc7-14c5897b093e","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":178,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"dfe80936-1cfe-4b72-b3c7-78591ca0d71e","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":178,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"2d7f828c-429a-482a-aa52-35b631cdc67b","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":178,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"54a97089-461c-49fe-9934-131df9890316","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":178,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"7cc2640a-e72e-41de-b372-0c52a01fdd45","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":178,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"0d99e7c4-40cc-46d2-9954-3719b2a0d1fe","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":178,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"02608551-e426-4b8a-b9e1-55de093822ca","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":178,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"f7bf01dd-c1ba-460f-b967-834c0b4caea0","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":178,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"18b27ef4-2ed3-4bf3-9acb-99139b139bc3","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":178,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"529f29f9-ff40-49ab-956f-5a63e8b1876d","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":178,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"a246b7d5-d943-4753-ae2f-a96306196e8a","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":178,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"9e52c764-fe68-4745-9129-fcda72ea84f2","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":178,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"fa02b5e7-894b-4ca2-96bb-3b6c204fa91f","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":178,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"341b5fb9-4673-46bd-94e7-abfbaf832338","block_type":"box","text":"possibility.","page_number":178,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"8aea458b-24e7-47da-b684-e5debc881e6c","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":178,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"cf2c03fa-184e-4846-a7a5-b3b8e2eb9b1e","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":178,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"a833322a-ec8d-42c0-a024-1d15ea039570","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":178,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"268eff24-9ea2-4f90-93e3-11c2370f8da7","block_type":"box","text":"A-7","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"51919fae-9b4d-43ad-8640-ce850b67098b","block_type":"box","text":"NM1026U-5978945-178/232","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fef0b701-5a4d-462e-9146-73dab57d6605","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":179,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"b5a9dede-69b6-45e8-ba51-59ab294dd60d","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":179,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"1e502679-66ee-450f-b90c-0748eefcbb6d","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":179,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"40b5de1a-ebda-4c96-a11e-2ea45b3e9ed5","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":179,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"1d2b6ef4-b6b0-4675-9427-0662f2edb084","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":179,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"1ad8de21-88e5-4461-863b-7d4ee9ecee20","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":179,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"9c8ac5d5-a280-465f-9249-7adfcc33c1f0","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":179,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"f39d67c2-7ddc-4bf5-902e-6e247677d291","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":179,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"dc837587-6bdc-4563-82ef-232ad0e80f42","block_type":"box","text":"relative status within major rating categories.","page_number":179,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"6a7b9b15-9200-4481-83e4-61280d7ab45d","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":179,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"a4ec598a-3bce-4c86-b25f-e5edcb7d27b1","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":179,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"5a681709-aa1a-4991-b673-47c33cdc7dda","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":179,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"ed2fcb99-c611-4916-afe6-e446901f5ede","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":179,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"857552e6-d89b-4314-be80-96e4bf749a5e","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":179,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"34b089f2-1f3a-43cf-a5bc-7f32c26ad390","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":179,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"c6339576-60bb-4590-8708-93845b578d05","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":179,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"8a7ff7a5-9973-4c46-84b0-8ee6b51bb7b1","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":179,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"916fcfd3-0651-4e16-ba1f-a804649f05ba","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":179,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"bdb71e75-b5c8-465f-994a-1a64713f72d5","block_type":"box","text":"finance markets.","page_number":179,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"ae0df0ff-cb77-49b6-8c7b-ff9f179fcf39","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":179,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"d240448f-7a9e-4f7d-a757-00353f945ec9","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":179,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"21677cc1-272c-4556-88db-80ca7076b9f2","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":179,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"f9c7f792-0f7a-4eed-b5e4-8fca47a4077a","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":179,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"b616bb2c-5b11-465d-a55f-25c450d5db33","block_type":"box","text":"commitments.","page_number":179,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"7d1a5a9a-1f70-439e-8994-65e5e702ebbe","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":179,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"a22a2a38-9d20-4462-93d1-ec6b0015ba3e","block_type":"box","text":"adequate.","page_number":179,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"45dbbe30-daf8-40b6-b1bc-d029a8b175f5","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":179,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"a5c39b54-94fb-4728-8403-ebb6dc751d0e","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":179,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"50f892ec-2182-4985-8928-e28c65079436","block_type":"box","text":"economic conditions.","page_number":179,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"3148322b-ab56-44dc-bbd6-92bbc008e27a","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":179,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"ec52657c-d4d6-4d2f-956b-7211198e907b","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":179,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"8a8eb181-a9fe-494d-9261-32d7dafd1c91","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":179,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"91eb11f8-d331-4cdd-8205-3c153c16dcd3","block_type":"box","text":"ratings only.","page_number":179,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"a1bbfa6f-f9b4-48ca-ae88-f1c92b0ca293","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":179,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"c1c20cc9-fcfa-4a91-85dd-2ed59bd60ccb","block_type":"box","text":"obligation.","page_number":179,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"a6683637-4d04-4f73-bf39-ce54f74fcc53","block_type":"box","text":"A-8","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"031eee86-8672-4ef2-883f-a5a79ffb1a86","block_type":"box","text":"NM1026U-5978945-179/232","page_number":179,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3654e625-55a9-4b29-a676-fb2f9f883b6f","block_type":"box","text":"APPENDIX B","page_number":180,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"bfa5e233-5d17-4011-9ff7-44eaf1efcd7c","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":184,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"1ddd2724-7390-4292-99f7-b67da6ff23a0","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":184,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"f0a9b833-9d0f-4ded-bd2a-7566e60736dc","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. 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There are","page_number":184,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"5782dcba-41c3-4270-aac2-e9f460d0bdb0","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":184,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"3145de36-0581-43c8-9f01-f4050ff23468","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":184,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"4956a237-ec27-4718-b4bf-a41147ee22c0","block_type":"box","text":"1","page_number":184,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"33faab83-4027-4115-8178-4e8cd2c73d90","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":184,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"a6974520-a536-4b91-8b6d-e041a193a843","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":184,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"f1e8766f-e4a5-411a-95a7-439795b662f4","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":184,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"52fc5805-0999-4532-9b4c-0c60caa27e31","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":184,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"6f94a361-1c97-4ae8-9064-e0d3dc2ffda8","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":184,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"6602669f-c209-421d-b02b-9e27636811ef","block_type":"box","text":"2","page_number":184,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"3880ae36-0d5d-4e3e-909a-8aae54837806","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":184,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"581e3b12-4e48-4ed2-8daf-85db0c2eff6c","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":184,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"1c116de8-9ce1-4439-967d-f7e2e96fdedd","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":184,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"290ab726-3e5d-4d23-94bb-eca5996f33ee","block_type":"box","text":"policies.","page_number":184,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"b6e6363a-edf3-4508-9ddb-b37a0d46f1a8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b7c180f8-7e50-4ca8-826a-0855ada00adf","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f9750076-ddd0-493b-bfa7-b93f3027504e","block_type":"box","text":"NM1026U-5978945-184/232","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f96b5f4a-b885-40af-899c-cda3a6f1c803","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":185,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"559a2d09-6341-4b5b-8b9e-2e06ecac5663","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":185,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"61bb0327-93e8-4dbc-aa61-29dd2e5104e7","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":185,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"f6b0ca27-af2e-4bed-bfb1-56d1c29e03f4","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":185,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"a5272866-0a8b-4777-91b3-56fd58ef2714","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":185,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"a5ef59e3-706f-4e7f-bc26-a3ea50e493f0","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":185,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"c1b83667-81cb-468b-bce5-638bae25864f","block_type":"box","text":"this work with research, data and analytics.","page_number":185,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"1c805c8c-7365-4fb2-8e2b-9db826a5227f","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":185,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"8d2ff4b7-80c0-47de-90df-5473ceffb95d","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":185,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"4231f650-0728-463c-8262-7a6de7252702","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":185,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"f702119e-67a2-46f0-aabe-aed2727413d5","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":185,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"03ce8be8-3617-42bc-bcb1-bfe3df76c5fb","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":185,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"4533bb6a-6ffb-42f8-a55f-41de46e9c031","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":185,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"41fdc3b4-a4ec-4b46-8a88-cb801e1616a4","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":185,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"0fd57a30-5863-43fd-ad00-01cfd8ae6db0","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":185,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"d9ea27df-b963-4791-b739-7539440e9a08","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":185,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"3d1d511f-2a0c-432f-8a57-af9af1df0890","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":185,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"a6302db5-f32b-416e-89e3-d25aecc5e27f","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":185,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"3fa49677-7c56-4fd0-94f1-0fb9c3fee1a1","block_type":"box","text":"shareholder meetings.","page_number":185,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"90aab0ec-8dfb-4652-8b98-57576d98db6b","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":185,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"1d6d90c3-882d-4a78-b900-ae9d9fc1a833","block_type":"box","text":"investing.","page_number":185,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"aa3583fb-924c-4c18-897c-ffd42e696363","block_type":"box","text":"3","page_number":185,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"a24f6c40-d128-4894-8e74-9a406df7f747","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":185,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"9d206b22-1475-49a4-922b-9260e3e6a7e1","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":185,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"db2aefff-2124-4614-b678-f2f7459ba2aa","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":185,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"b1079e2f-4fdb-4657-aaee-c3a45f79c298","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":185,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"1edff0e7-02c6-4f61-8797-01a777298eb0","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":185,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"6e806f0e-e63f-4a6e-9324-9abfcd20504d","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":185,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"11336248-91e3-4ed8-867a-b8d26a2b3685","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":185,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"67646cdb-fa96-4e01-8587-887c956458d1","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":185,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"63cdec9e-8d76-42ba-b6b1-e30d996d722f","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":185,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"f10c2139-ec98-424c-be83-80fadeca0190","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":185,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"3549d38b-e258-4f11-b57d-a727751f0957","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":185,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"182d8f5a-2a0e-4564-b04e-042968e9a47c","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":185,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"077e8f63-a35e-47f4-b0ec-5b8513fb9aa9","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":185,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"e063b8c9-1beb-4fc0-b3c4-968ef20341e7","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":185,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"a69527c4-5d56-4937-996c-1107d2b36f4e","block_type":"box","text":"management teams and board directors","page_number":185,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"86cfa455-253b-4b34-9cfc-31c5d899af1a","block_type":"box","text":"4","page_number":185,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"9600956c-f6d1-470a-9634-baccde7d22de","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":185,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"7dbce370-b3fa-4616-abbd-1d6528856246","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":185,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"22d64200-9a12-4567-b24e-5a3e93ab59a1","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":185,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"a0c6cf01-1fda-4ae3-93dd-e7d576c28696","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":185,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"3dfde174-0d6d-4a81-99fa-9b06b89b3dd1","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":185,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"816a7f22-3e5e-4ccc-a448-421174c4a8df","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":185,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"e1c377b2-b47b-480e-881c-f2c2d8eabe0c","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":185,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"2291629a-e733-4024-a2dc-d24f794edd52","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":185,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"0a713c43-a6fe-4116-8e40-dc1368fecf85","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":185,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"21c93a91-2ea6-4339-8fa8-272c57bae7bc","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":185,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"10dac3bc-7290-419c-82f3-4123b6b97819","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":185,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"9d6189ab-32ca-40f2-a8c9-4ec3f02bef48","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":185,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"ce454944-ffae-4e49-9a7f-d890a986a4f1","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":185,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"cd0d6e8c-a964-40fd-8bc2-402f4d20c8f2","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":185,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"c46a838c-86ab-4835-a869-a4f3dda1a014","block_type":"box","text":"3","page_number":185,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"6154739b-8f7f-429a-afc5-f4164f17b3d0","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":185,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"1546a16b-9a49-405c-bc6a-edd43bd86df6","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":185,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"2a2ad9f6-eeea-41af-8888-e72b485bf1d1","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":185,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"bee37f86-f11c-4c36-95bb-23932a65e3ed","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":185,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"23c8ed5a-95b4-446b-8093-90ad8b8868a5","block_type":"box","text":"4","page_number":185,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"3a3186a6-429b-4e15-a46c-364562a96f9a","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":185,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"87e0c96d-5789-4eb5-a612-e0de66771f7c","block_type":"box","text":"boards and their members, where relevant.","page_number":185,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"e57b5bcb-ca15-4977-8d5a-41950d924ca2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"619d6de4-a20e-44cc-bf13-cdaa49eb1b1c","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6b99e158-a13d-47d5-936f-2b81eac63960","block_type":"box","text":"NM1026U-5978945-185/232","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9d83f0fa-f40a-4bc4-8a29-a9bd5e9a813e","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":186,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"785c97ad-c9e2-4b49-b311-291ef66eabc5","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":186,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"8b363c2a-8631-44ea-8e51-35bc50dd20c7","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":186,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"4b763f7e-0bb4-4959-a463-296614ea0d41","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":186,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"66484509-587e-4e46-9c7a-79d06d3490c7","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":186,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"300d6f41-3d6a-4eec-b508-099e47bfd008","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":186,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"a46bd754-8b28-40af-8c3a-29d23354a7f1","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":186,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"22f04cf9-b0c7-4cff-b16c-58561d5ec0c5","block_type":"box","text":"5","page_number":186,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"048a2185-9578-4a6e-a6e9-3b6e4178917c","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":186,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"c8fe1548-7c76-4907-8649-733c3551144e","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":186,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"f92bd27b-7195-4ae8-ad69-dae582c34693","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":186,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"4fc0800c-f743-4b39-a7ad-39fd925cbdb8","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":186,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"a73b377b-f34c-458d-937a-d6ea86893246","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":186,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"742a9fe3-0550-4ebf-9dd5-dcee3ce30149","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":186,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"4d860fa6-4879-46ef-a1d9-b9aec1253c27","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":186,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"6f2675a8-1ed4-4e19-b40f-56d637d3ac43","block_type":"box","text":"5","page_number":186,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"59532f99-1da3-4435-aa3a-3874bfafba7e","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":186,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"9dfda43c-0e07-4805-b89d-80fc20a81dd2","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":186,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"5fc9a61e-bd52-4ab1-bea3-800a1b4d790c","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":186,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"36f20665-a839-4642-876f-1dadb23b99f7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c16df823-1a38-4156-a588-3dd0b9524742","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"a486c3c6-91c4-4539-a969-e54e16cadaa3","block_type":"box","text":"NM1026U-5978945-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cfd07bca-e9f2-4841-ae59-da4d463d6519","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":187,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"66cf0b60-7403-4534-a2c3-5ff25cdfcb20","block_type":"box","text":"Roles and responsibilities","page_number":187,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"aebd6eef-e5c3-4150-b6ba-c2b2dd7b8d3a","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":187,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"b9334280-1d24-475a-bf76-0f1c96ff4ba8","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":187,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"15472a3a-d475-41b3-a7db-85d00e0b2fa3","block_type":"box","text":"6","page_number":187,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"a4fcc2bc-17ac-4e54-8a1c-a1e01c67ebd4","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":187,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"a1d6323a-e1af-4675-8025-a87dc705149f","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":187,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"dbb26edc-f2d9-442a-b6ce-afdb6b80fb42","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":187,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"24ed0021-d955-406f-ab2c-1ef1e9039e18","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":187,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"4be08d8f-aac3-4bab-b524-39b3b3d23d0e","block_type":"box","text":"performance over time.","page_number":187,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"ad8b66c5-6dc3-4742-ba3e-9f8032475814","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":187,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"2accaa8d-c268-45b2-9887-74ede95ba5a5","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":187,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"3a764638-d973-4d29-91df-6b3cd8049488","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":187,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"b975cee0-a486-476c-b4b1-3705e31fe7e7","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":187,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"fe7e975f-18d1-4f85-b25d-3434d9f499de","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":187,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"955f24ae-6ac8-41ef-826f-6fde28496b15","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":187,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"59c1434e-6cdf-44c6-bbca-efad5003beb2","block_type":"box","text":"Composition and effectiveness","page_number":187,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"f31b9ff6-6f94-46e4-b605-d2ab13179913","block_type":"box","text":"Appointment process","page_number":187,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"15d26442-f9b1-46e2-920c-b39cef97c7b9","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":187,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"5160570c-a0c5-4695-9bbc-be58a2889a92","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":187,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"99c2cbde-8810-418b-8276-e4e53b2c2861","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":187,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"266c002c-58c6-4313-97b1-3f45f7d4c8d2","block_type":"box","text":"e.g.","page_number":187,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"39b2370d-db47-4866-b48b-aef08a67b16b","block_type":"box","text":", sector, maturity, geographic","page_number":187,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"758e68d8-781d-4155-a435-82191f3ba132","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":187,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"057b419c-cf5f-4b4d-bcaa-627df9a0b2ba","block_type":"box","text":"e.g.","page_number":187,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"7839daa4-d8cd-4b5a-be8c-f2eee626eadf","block_type":"box","text":", financial expertise, industry track record). To","page_number":187,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"75ccf87f-0d1b-4493-8e1b-aca9d0320b6f","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":187,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"cc51444c-f056-4fa0-8296-f19e4c9d70b1","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":187,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"f24b8d3b-6537-4ce6-b1ac-da4c10393af9","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":187,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"b150b669-3844-4ed2-ab1c-e62aba6a2589","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":187,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"1c9fd806-bcc0-471b-9318-af74f24761e4","block_type":"box","text":"and local market requirements.","page_number":187,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"da34be65-a4e9-49ff-bbca-dfbc6b6263a0","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":187,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"590074e2-db78-4b33-ac8e-c347c2ca4afa","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":187,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"4be944f8-d5f3-49cf-aeb1-34af7ee19ebd","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":187,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"c6d44208-b5a8-48ae-b864-bc0b72f23422","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":187,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"619cd130-099d-4468-bcb3-d53f5847923a","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":187,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"237025b1-74ad-45cc-a2f2-d52b3bb562d6","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":187,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"a7d3bcd1-7bcc-49e5-b368-8183b166d9ed","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":187,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"1731ace7-3e5f-4340-8f9d-8b192a6a0681","block_type":"box","text":"Independence","page_number":187,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"2475ea6d-fb95-4000-bfcf-47a19af79062","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":187,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"f4f3a555-fd01-48e5-8a38-6621acf9c5f0","block_type":"box","text":"e.g.","page_number":187,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"dc695ce7-5da3-41f9-90f7-08fc4d2dde1b","block_type":"box","text":", government or","page_number":187,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"49a2d3ca-9447-4dcf-aac9-013f0ed5ad37","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":187,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"2f4d9e23-1929-4175-a26b-7199c9420df0","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":187,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"ef339361-b032-45cf-992b-149aba6b24c9","block_type":"box","text":"conflicts of interest or undue influence.","page_number":187,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"56c5dbb8-24a3-48e6-9002-893db65a9f93","block_type":"box","text":"7","page_number":187,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"e05cbef8-2a4d-4497-9932-892979dcc20b","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":187,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"b7fe2c39-5942-49ae-aaf8-c15023f24b2a","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":187,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"c9cc8035-7540-440b-9644-638a92f99ac1","block_type":"box","text":"independence should meet those local requirements.","page_number":187,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"ca5454a2-23e5-4b3c-be19-9e18617576ca","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":187,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"4ddc2536-5a00-4870-b492-5549046c17c8","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":187,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"46a3c1a7-bd9b-49a7-a2da-fd74d5b61e27","block_type":"box","text":"composition if this is a perennial issue.","page_number":187,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"dc1e0a8b-feb7-4576-8811-aaf827e9702e","block_type":"box","text":"6","page_number":187,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"2d5127eb-980f-4c00-ad9d-eb27c8ac57e6","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":187,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"55d14fd7-b77b-4e4a-b514-fcd348232554","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":187,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"e9aaec09-ae33-4e11-8bd2-efaf5c5312ed","block_type":"box","text":"7","page_number":187,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"2374641a-716f-4eab-ab3d-16917a86d031","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":187,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"6a61f91d-5f41-4413-b663-aa5c3d3bb0a3","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":187,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"c5db8c99-c436-4269-bca3-b74c645b4051","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":187,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"71e4983c-8311-4121-a630-e807a009af12","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":187,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"69724880-29e2-4933-b5f2-2cf0d88fd8ba","block_type":"box","text":"of the company and shareholders.","page_number":187,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"7919b7e6-f461-47d3-b620-57ee7165522f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"079ef639-e81f-42c4-b4c3-f3824a6b0266","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"dd8b7de2-0434-4e82-81e8-b2ae979ba5ae","block_type":"box","text":"NM1026U-5978945-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2d0e4497-44c7-4385-9979-48322ebd7c3d","block_type":"box","text":"Independent board leadership","page_number":188,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"69832809-389b-45b2-8d7e-4e75a09e411d","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":188,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"fe556c80-e519-4096-9435-7564bbb7359e","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":188,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"e8181494-b1eb-4366-b2b6-99d4162547de","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":188,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"9d9c7cf1-085e-45b1-b109-5ac207018320","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":188,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"96b87745-0f59-4ffd-bc46-c527660ec186","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":188,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"d4e9c9e3-a59e-4b79-b1ca-2e4b92017dde","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":188,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"9c9de57c-93dc-49a1-88d1-9c7b832d1556","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":188,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"d6e05a6d-0b38-48d2-abfe-83a112b16235","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":188,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"24e5caa0-c9b0-44f1-b6e4-e146855e28e4","block_type":"box","text":"how it serves the interests of shareholders.","page_number":188,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"7f0671b7-84b3-4649-b8ac-e7202cc04c58","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":188,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"212f8d9c-2933-4219-9c11-20e1cb484282","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":188,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"b75356b5-901b-4380-9b98-33343ebe45dd","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":188,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"6a1e5bb6-2f30-487a-b37a-f15b6b0cc99e","block_type":"box","text":"Tenure and succession","page_number":188,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"d2e28089-5d06-4db8-878a-81d61270e79e","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":188,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"b80343ae-f903-4564-8996-3ef78fc484cf","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":188,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"cafae80a-406c-4e56-b1db-61f2d0d20a5c","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":188,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"0bc30a5b-2ca0-44c1-9177-bffe3791d2e9","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":188,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"b334adfe-3e6d-40f1-a6ae-55b1a10e181d","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":188,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"1cb3973d-7baa-4997-ba1b-02e967605ea7","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":188,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"94d82460-906d-4ff2-9307-fe29aa89be28","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":188,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"aa2e1b68-4b20-4bcd-bdf5-1d1c5ecea0b7","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":188,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"14003548-99ac-49fa-81d7-b50494bd1550","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":188,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"d5e74ae9-e5d0-46bd-bc6c-1eb73a1d7f72","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":188,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"d0608011-bb9f-48f7-aef2-f82a6bfe5d03","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":188,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"90057485-b9af-4c09-9ffe-0cbc500eaba6","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":188,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"f802f313-2035-49e6-8b7d-f3e5f281d3b5","block_type":"box","text":"for their continued service is not evident.","page_number":188,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"55912f5f-7929-4497-8c78-42ed228dfb72","block_type":"box","text":"Capacity","page_number":188,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"daed1e71-48c8-44f9-8a2f-ffdf64cabc79","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":188,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"153f9eb7-f9ff-48f8-80fa-30734fc495ff","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":188,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"eb79beb8-03dc-43c6-87f8-95d00d8b09af","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":188,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"a0da483d-a5ca-4b86-aa18-6f5ae8034205","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":188,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"3a4eb1d6-4b40-4d54-a79b-ac3fc6d5a63f","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":188,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"8b24e6cf-6ae0-4d97-bcd3-923253f06ca6","block_type":"box","text":"determinations across markets.","page_number":188,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"d7d4f5c6-9d1f-4bcb-8d75-5eb9bcb2f149","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":188,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"0b1df8eb-e483-4ce1-8d8f-30b59c40a380","block_type":"box","text":"their duties to the board and company.","page_number":188,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"7223d92c-96fd-4402-afb5-51f279bcedfb","block_type":"box","text":"Director elections","page_number":188,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"412fd162-34bb-480e-b3d1-0b7da78be24e","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":188,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"9c519a7e-1468-4088-82ed-da58f932b1ba","block_type":"box","text":"structure","page_number":188,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"d2c028a6-28db-4920-be9f-52f1f8059b3a","block_type":"box","text":"8","page_number":188,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"52b40563-01c7-4a07-b811-3acaa9ffd709","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":188,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"73e6678c-205a-46e1-9237-98517ec5e811","block_type":"box","text":"basis of its business model (","page_number":188,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"d43c5c20-9bb0-4307-bfa3-853f06f932c7","block_type":"box","text":"e.g.","page_number":188,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"39a55abe-cdf9-43f9-af35-4dea1cc6cc76","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":188,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"60f8d3d4-149b-4c9a-adbe-7c9be29a28cf","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":188,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"4b712244-c1bf-486c-934c-238dc66f1a7c","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":188,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"345f9a93-98f4-4287-b2fd-1abf41d79383","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":188,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"ac433b0d-945a-4534-9ade-37fa8df99f8e","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":188,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"fad3cd3c-00bd-406b-b8e0-32372e7b60f5","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":188,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"41a44f4c-32a4-434a-9753-dcf3bc62b631","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":188,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"f3929239-dd22-4e64-8f7e-8cdc1082378c","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":188,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"82c5ca08-3f25-4ca9-8ac1-b64d2cdaf777","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":188,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"f3e8fdc9-cb83-4c71-aa88-56cefeafe195","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":188,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"fde40afb-9d4e-4ab5-a4dc-aa4eb9ce464e","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":188,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"7f3a4b60-04f7-4210-8970-6b77adfe908b","block_type":"box","text":"8","page_number":188,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"2f5ff8d9-2a52-457b-be01-e7b26d061557","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":188,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"fd4f9e17-eb71-45b7-9f25-52f21ea940c6","block_type":"box","text":"directors stands for election in any one year.","page_number":188,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"c48b81b9-7470-4556-94aa-0395b254e4df","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"39a1556e-0e0d-46ac-8b9e-4fee55d30e5a","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2ededaca-ae5d-4493-b43e-3ce207805bb7","block_type":"box","text":"NM1026U-5978945-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"47032698-380f-4d4c-9251-cf68b397d897","block_type":"box","text":"Committees","page_number":189,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"684719cd-2a8a-438a-9a33-6564c65539e2","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":189,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"8cec4354-ab37-44d2-8781-de9c48c7401a","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":189,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"c27c4c9c-e7cf-4d25-b268-6cc5127b0851","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":189,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"0e48f787-272f-4486-836e-fa815904ebf0","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":189,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"23e3d19c-e671-4ad2-b43d-c69b0a7bd7df","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":189,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"d7b6b097-4248-4e8a-957e-15bfc1da235c","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":189,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"c4ee5468-5ab2-4808-ab1c-43b07b84fb0a","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":189,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"c0ca4ace-05be-4219-999d-7de07ffee405","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":189,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"1eac7697-bbf3-44cc-a9f5-5e383fdf48a3","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"23bef355-ca6d-49e3-89f2-a01e96bcb682","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":189,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"ea598410-f6ae-440c-b73f-9ff3e6ce4a2f","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":189,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"3bd22e9b-ec05-4ea8-90cd-40a9b4724ef9","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":189,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"64dd5e4c-5ee5-4465-8fd0-cbf22d4df122","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"35b9a31d-ca29-4add-a38e-92f340755bb2","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":189,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"92c27314-7aaf-4fc4-8433-dd935d920de3","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":189,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"c44d9711-dade-46ff-a7c5-1e878b84d7d9","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":189,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"8bb924d4-ac20-4736-883a-6a9ca9d8f25c","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":189,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"65dd6f26-c969-40e3-9bab-b6b7b38b8ec8","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"f5a63920-fabc-4311-98e5-fdf359f4d844","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":189,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"bee891e4-4997-496c-8cea-88bfad1f01b8","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":189,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"de9a120f-ac79-4992-99c8-06f02a9d8482","block_type":"box","text":"firm-wide compensation policies.","page_number":189,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"5cfb409f-4595-404e-8465-ec14b9b5dbbb","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":189,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"1c78d7bd-2700-4eab-8bac-0219a3525f5f","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":189,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"54b4b014-4b91-4acf-a2f1-7250e8180708","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":189,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"e173adb6-d564-475a-ad2a-6bc192a12520","block_type":"box","text":"Board and director evaluation","page_number":189,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"280893e1-ce47-48c6-8855-233bb195bcd5","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":189,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"9afd9cdf-fd18-4315-bd52-8b41dd9e2d9c","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":189,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"e9a6ca9d-50f4-4c0e-8b1d-523b1833053a","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":189,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"3d1cfbfc-bead-4f2f-9b7f-792f3188a22d","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":189,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"f9dd5567-b048-46bf-aa8a-d5363e0bf760","block_type":"box","text":"a result.","page_number":189,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"3898c3d7-53a8-4d86-8010-f9ea58ad54ea","block_type":"box","text":"Access to independent advice","page_number":189,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"40ef6022-fd45-4bbd-a5ea-fee9cb8139c1","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":189,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"27f2b64d-856d-47f3-9724-07dba606eb62","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":189,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"f3a4ea69-c1b0-4870-9a62-900292fa4992","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":189,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"0cee83a5-8a69-4d29-a6ba-f06d01b18d7c","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":189,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"3dd9b1e3-76ed-46f2-a410-bf82fde81135","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":189,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"83828495-4ada-480d-ae86-8b7df1f5195e","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":189,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"cc96443b-7ec4-4ff9-bc04-f19906547819","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":189,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"b467a487-ccfb-4a93-a366-b0f689c283dc","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":189,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"9ab11448-1347-4ffa-92b3-6744ed16360c","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":189,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"1d4bacf4-cc72-4de6-83bd-402e5fd917fe","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":189,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"140f9a57-362e-4871-b8ff-8945e50e0136","block_type":"box","text":"performance.","page_number":189,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"2279137e-4bc1-4498-bd31-26f0ead0a937","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":189,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"f1541fb6-ebe0-4e63-a227-09b304ddb3ec","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":189,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"3d7bba1a-3d95-45c1-86e4-94aa92f96c1a","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":189,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"2cdb2ea2-8b2c-43db-b9cb-3b2276cbf4c9","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":189,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"ac71b02a-225f-4a55-9735-ecc98ed20831","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":189,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"0b7086c0-b30c-49d1-9f41-46fe4dec6423","block_type":"box","text":"recruit and motivate.","page_number":189,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"d1f1ee50-7a2c-48e1-a463-7ecf1c3ffe3d","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":189,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"8d1d3772-17db-412f-818b-064b8ff49ca6","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":189,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"389a7ab1-d1df-4164-9945-eca96fb7a704","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":189,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"e320a0b0-bb1d-470d-9b02-7c8022aa2b3f","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":189,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"5d6151e2-31bc-47af-927d-da743fb47128","block_type":"box","text":"arrangements include:","page_number":189,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"b5920a6a-c230-4cb8-9950-36b241173228","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"909a8930-e201-4153-8855-283d9ea02c25","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":189,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"196fc815-d42d-4c9f-9ab2-253b93a4213f","block_type":"box","text":"the company’s size, sector and market.","page_number":189,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"90088b73-fd87-49a5-999c-ccb19cdfed28","block_type":"box","text":"BlackRock Active Investment 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objectives.","page_number":190,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"23c47c1c-16a2-4fd0-a413-f99bcb77ca5b","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"02c24d4b-98f8-4ed5-b673-1e09aff7d8a7","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":190,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"2d6c6416-a7f1-4a34-a746-8f1430a5a1a1","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"cf50cbd7-952f-424f-8639-af3fbc92ff37","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":190,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"014802b1-7d83-449a-b46b-d5bf1479b151","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":190,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"96500e24-ace6-4a90-931e-87da2c9c2251","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"018e8f36-c4ae-449b-adfe-e1706f322027","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":190,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"09d73502-51c1-4981-93e4-e44515b9fbe8","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"c82f2ce3-f537-44fa-9f13-3dd8d4aa173f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":190,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"613edf9d-294e-45b4-a8c0-30a3d9dcbeed","block_type":"box","text":"transparently.","page_number":190,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"b5135241-859d-4d09-93c6-224593b38d84","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"efd30a4f-d711-4d40-bfdb-2efc9820394c","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":190,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"e72ac247-ec77-4f78-ba31-4fd4c49653df","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":190,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"46c2799c-ad5a-4b82-8a0a-56b8aeadba5e","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"344c599d-427e-4907-a183-6b15e584c0a4","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":190,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"cba74344-90ac-4d4c-ba6c-11ef077d0f20","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"442c795a-713b-4e23-987f-f89a5c5aee29","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":190,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"3ae4bb80-6ca4-4ada-999d-1d601493dad7","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":190,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"3d8c5b06-ce33-4fe4-9af1-240e7dc5d0f9","block_type":"box","text":"misconduct.","page_number":190,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"e156858c-2149-4751-8b07-091a94191db0","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"590a92a3-8430-4e95-89cf-27a0918e3fb6","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":190,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"4abb9925-2729-4dad-a8aa-4dc9d44f0be1","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":190,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"d66d91a7-21d0-472f-a934-70d64056501d","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":190,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"82868ad1-4d9b-4e3a-9b2c-66bbcc6b1c0c","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":190,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"16698d54-2322-40c7-ad8a-3dff2cab3af6","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":190,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"bc0a726f-34f3-488f-b7d0-1fc741c0f9af","block_type":"box","text":"committee, or the most senior independent director.","page_number":190,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"5ac499e2-0dfa-47c6-a6cb-2aee822ee73c","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":190,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"6f52b204-8e2b-40a3-a580-33097fcd53d8","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":190,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"79fbf21d-1032-4459-8fbf-bccee138d143","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":190,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"11149279-641b-4181-b17f-dbad0ef11b69","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":190,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"80f3c783-b473-4bb6-a7e4-c15d266bcb27","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":190,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"41a8627c-1c07-4c41-a71b-dcca6c17e4bb","block_type":"box","text":"CAPITAL STRUCTURE","page_number":190,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"7535f4e8-ee6a-4899-b720-73e080412aba","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":190,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"f23d429e-a221-4e4a-a4fc-148f4b057c0b","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":190,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"54a3c34d-120c-44d6-b4cc-525e774de4b0","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":190,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"e2edc4b3-975e-416f-a61e-476774f56324","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":190,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"8d5bfd99-2aec-41b5-a754-daa65d886836","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":190,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"6448ec6e-eb6c-43c9-aa4c-d4c1de31bf6c","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":190,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"8fbc8144-ccd9-4ceb-8cb6-df156300ed47","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":190,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"33105e63-3625-4941-a080-67795eecc157","block_type":"box","text":"Share issuance","page_number":190,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"661c0970-9336-49e8-b60a-14b02f772ad1","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":190,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"d5922b40-4411-46f7-9853-6818866fd6ef","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":190,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"d275d68e-be29-40b5-aff7-01816f1185cd","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":190,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"85823529-01bc-4316-a00d-6dc451e488a6","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":190,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"7f2211be-039a-48f5-b5a7-3f5eccbfe793","block_type":"box","text":"market environment.","page_number":190,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"2b6efbd7-7853-46b4-b4f1-81a28cc62fe3","block_type":"box","text":"Share buybacks","page_number":190,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"4a7009ee-4aa9-4513-a9d3-fab25edd76a8","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":190,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"4dd1822c-6695-4b5c-8d0e-4f3c731bf6ac","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":190,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"b189be47-5fcc-476f-acc3-b24b71a64af4","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":190,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"bb137fa0-d131-4a2a-9db0-f8f0f6046210","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":190,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"bc01eea0-15b5-424f-9a1e-706d55b40307","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":190,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"0b4af7b6-76ff-4973-a7c2-b0aedda4f36d","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":190,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"a0f450c2-d5bd-4076-9650-1780a4350f46","block_type":"box","text":"of the company and the market environment.","page_number":190,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"59545086-2979-47aa-9c91-977acdedec77","block_type":"box","text":"Dividends","page_number":190,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"d01dd8cf-b997-4399-b8c9-13c22a2d7ac5","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":190,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"e0e10e6e-0a99-4bf7-8cf1-7e17540363ca","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":190,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"e957355a-6050-4fbf-9966-6b0445e488e2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"28f05cfe-8d25-438e-aad5-a7bb27468dde","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"589ebb0d-2e94-48e5-82b4-d081143155ac","block_type":"box","text":"NM1026U-5978945-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fb4a20e3-5675-48c1-864f-978636a31bb4","block_type":"box","text":"Differentiated voting rights","page_number":191,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"8680e7e2-aafd-4781-be69-ee9861d0197d","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":191,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"8abcaebc-fa9d-47f8-8a51-87a00d260d1c","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":191,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"0052d53b-9481-4aa7-b0ad-358d6fb030a7","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":191,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"b34095f3-cc98-434e-ad24-cd1bc9a42059","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":191,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"82063db2-1e37-460e-a2a3-08ae93485860","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":191,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"3119280c-1c86-4fe3-82c0-c8e765828b73","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":191,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"2bf623e5-b5a7-4608-96c7-4945a0a8ff0a","block_type":"box","text":"analyses of proposals.","page_number":191,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"ef66fbd1-091b-454e-9ee5-0b5a3f905442","block_type":"box","text":"Mergers and acquisitions","page_number":191,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"abce898d-12e1-48f8-bae2-b8e08b056da2","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":191,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"14f5d11a-7243-4f6d-b156-fc5d5ade5a95","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":191,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"187b4ab6-6d6c-4d89-af94-d3799b7595cb","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":191,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"d86a2968-91cb-426f-8c9e-20271e21de67","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":191,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"95224edb-f509-44dc-b497-f945c92be156","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":191,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"e7a2c28c-c27c-492f-a871-46c24fbc7bea","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":191,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"07204531-41b6-4c5f-a5fb-eda9458c57be","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":191,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"2568827a-307c-45e3-9218-fc2bd2420f9d","block_type":"box","text":"Anti-takeover defenses","page_number":191,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"58f76caf-0c3d-464d-91ce-7ef13195c484","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":191,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"acce9778-dd5b-4f8b-8319-3770cdb8cf0d","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":191,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"81e4eb5e-568a-4205-9f09-91bc9fcdb209","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":191,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"c596e038-d0c9-4d58-a6f6-86a971fbc4f5","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":191,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"1a52c4a8-50d7-4f20-94ac-7e0269bd326c","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":191,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"7b4de80a-cc07-4fae-a327-a7ac91b863fa","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":191,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"e03a7b7a-9d6f-4c4e-97ce-7ae13e8ba546","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":191,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"251db7f4-bdf7-433e-907b-5fbdac3c7957","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":191,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"22d043be-712a-4508-b1e7-90a5f56a6f7d","block_type":"box","text":"Shareholder activism","page_number":191,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"295363f2-7b83-4665-9afb-635aaac51bad","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":191,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"94d37e23-9f72-4b41-9e9f-fb6fa66e009b","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":191,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"634ea4cd-bba7-43dc-a9ed-22dfbe374fc6","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":191,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"a5fc6e88-b433-4710-bf86-e3eafa8b7a5b","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":191,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"1c34ed5a-51b6-4371-a32d-cb7b27d0041e","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":191,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"7e106caa-211e-4788-9296-cdcde2f781c5","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":191,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"69df7b07-3401-43ac-9e19-9fad0fb07350","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":191,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"9d21e9e6-7c99-4aff-ac6b-e5a934d48c82","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":191,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"d7e414b0-f3fe-4589-8792-fecab74450e5","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":191,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"f7113559-2df8-4a3b-9189-7956ea56f451","block_type":"box","text":"protecting shareholders’ interests.","page_number":191,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"8ccbd193-9637-48ee-8460-43dcb9a4fc83","block_type":"box","text":"Significant shareholders and related party transactions","page_number":191,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"b218a7f9-eb85-445d-8a99-fb9b71192698","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":191,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"5dc65e87-f3ac-4855-a500-8ef4af69e300","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":191,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"ded8365c-c348-4f23-8e4c-533a7bc47dfd","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":191,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"b9a24a69-ba43-4f7e-a092-6f87ef6d21df","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":191,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"218340bd-7546-4739-a963-589d4e8137ba","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":191,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"2b3ec741-3e1f-4f77-a205-df6d6d1276ed","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":191,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"2ad24961-bac5-41d1-b7af-3afeff931819","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":191,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"c5fee237-f287-4a16-bb00-1acaa76cd4f3","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":191,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"af438b02-bc0a-40c2-b173-3ba2ca69d7c2","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":191,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"f00a9e50-4578-4a3b-b89d-a6a254a40990","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":191,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"8b880592-7f9d-4a6c-a48f-33d37c73c3a8","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":191,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"64144c29-17b7-4b40-8539-158eb2781752","block_type":"box","text":"audit.","page_number":191,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"4aeaef7e-a45a-46e1-98c3-ce109cf1c45f","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":191,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"782849d5-db83-4ef7-ba6e-193a4a5adc8f","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":191,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"069a7941-fe46-400f-a82c-345b522477c8","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":191,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"b0aa4777-1595-426f-8b59-f2ec4a1299ed","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dffffb30-5775-4ed4-849d-df215dd1e7ef","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"32fcf405-49af-40e8-be0d-1dcc02c4b896","block_type":"box","text":"NM1026U-5978945-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7d4a7880-49e4-4c26-be42-332cbfdae97f","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":192,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"710ad581-872b-4021-b4e3-422855e18139","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":192,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"cf2a56c6-e4c7-4061-ada3-56137a85ec49","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":192,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"5de8a022-16a6-4bbe-b94d-a13a25d7c534","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":192,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"cd30a909-3b47-43eb-aea9-4fc9e2373277","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":192,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"86fb86af-8e8a-4704-b6ce-c87494c9bb4f","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":192,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"bea031d8-e830-4027-9a63-65a3a7c78044","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":192,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"a4e5c9f7-5fa1-4824-b9a0-cca4f7576be2","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":192,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"910380af-51f1-41ec-9f1a-3cb9af8026df","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":192,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"885ab72f-eb7b-4231-97c6-a10d4244b041","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":192,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"28c4f4ab-983b-458d-931b-4aa5ab0232a2","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":192,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"821cb8b7-4423-42ed-8e21-d549967b6768","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":192,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"c6af8e15-59b0-4b61-a167-9595c571a1c2","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":192,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"d4ec9117-24c0-47ba-920f-441c6c0cfc48","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":192,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"b32a1166-7283-4aea-9dd2-1a973b717fc2","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":192,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"26e21965-a6d1-4e96-9777-d130e0c3ca5b","block_type":"box","text":"9","page_number":192,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"0d690170-2e36-459c-9a64-46b6127ba478","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":192,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"1632b0b5-e8bc-44b6-9e6f-3a434861fa2f","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":192,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"3c6e230d-e9c2-4f91-bc67-794e992f2055","block_type":"box","text":"standards specified by policy makers.","page_number":192,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"c95e45dc-147e-466d-af4f-89b5a858370b","block_type":"box","text":"10","page_number":192,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"54e8971c-9515-44b7-8a5a-9b84b1ed0e9f","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":192,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"000e9f06-a857-4284-9782-a5d58baf51ea","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":192,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"777ea133-c74c-40a1-9ddd-5e0f237ad12e","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":192,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"81646515-e5ee-4d57-9285-8a92754b19cf","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":192,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"d8c5c138-5122-4dac-b05d-81d438f95116","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":192,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"8cbe31f3-1f90-4d4a-ac64-73b744ecba70","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":192,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"13e83f69-9c5a-492a-8705-819a0c61cf13","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":192,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"09aee32a-6885-49f3-87c7-4fcec9ec01aa","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":192,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"b842a1c7-391f-40e4-9c7d-1860dc922b38","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":192,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"fb7e9fcf-b487-4587-9bb1-b21aada8c917","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":192,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"eed7cb12-7559-4537-a173-d338a11db6ae","block_type":"box","text":"remained independent.","page_number":192,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"30ec12a4-4118-44ef-8919-a5d1a8eafd93","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":192,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"3f89722a-dd54-4745-a0de-d7357b402810","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":192,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"2f6b2a20-521e-4ebe-ba0f-8a476d66b04f","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":192,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"9fa8fec5-e29e-4648-bc14-0cc1e6162dd9","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":192,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"1ecff423-0baf-4f0c-9ffe-75d0b4d7970e","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":192,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"80b4ddda-7644-4f6b-abe6-b1c73e9edca1","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":192,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"dd995100-e2f4-477b-bcb7-efce929458e5","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":192,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"29819fe5-4e1f-492b-9495-85bb147dee8b","block_type":"box","text":"General shareholder meetings","page_number":192,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"75b7e77e-d1b2-4df5-bb1e-73757a4e1a07","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":192,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"8260e012-4587-49d7-948f-c2be28f76254","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":192,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"cd824fcf-c32f-4564-810d-d4b9f4646641","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":192,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"1ba540db-66b4-4cbe-8930-5a5ec6468501","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":192,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"18074295-ce69-4098-b98e-39ac8e49b7e4","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":192,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"589b0383-6eb2-44a9-b981-0aff038bf3fd","block_type":"box","text":"an in-person meeting.","page_number":192,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"a02fb19c-6373-49f4-b5ed-cf16ef7914e2","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":192,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"598194f2-1491-47a8-bd07-1e7eaf9c8465","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":192,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"556b9ea5-29cb-4af9-bb05-972bb11aa74c","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":192,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"0201a684-1101-4158-b6a3-0db9a5830cc0","block_type":"box","text":"participation.","page_number":192,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"da593833-a2be-4fce-830c-7c16868f0836","block_type":"box","text":"9","page_number":192,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"bf54c96a-c473-4efd-a703-2baaf25cedda","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":192,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"c0d4de47-41fe-41dc-951a-6ff93aa17ee5","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":192,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"19217398-bf72-483f-98d2-4404e31a4bdb","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":192,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"35452191-70fe-4586-abf6-bfb8bac6f109","block_type":"box","text":"Disclosures.”","page_number":192,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"5c141281-d237-4c71-8273-bd8f3a9edf51","block_type":"box","text":"10","page_number":192,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"21ca3e2b-abe8-43a6-aa51-2eaf87e1653d","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":192,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"5e3fc4cd-c383-4654-9d2e-43b3bc871ee4","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":192,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"176328fe-7068-4058-8a0a-490f7f39cb7b","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":192,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"27860c2a-c6ac-4978-9b3e-49090d017313","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"76b03929-f383-4a11-bad6-3e94f534534b","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"bf0c9903-8111-427f-9231-fb0d17495504","block_type":"box","text":"NM1026U-5978945-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0901a4d6-0882-4fb8-80c1-5778fd76b68e","block_type":"box","text":"Bylaw amendments","page_number":193,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"a55eafc5-9253-4d6c-b945-97a0c026d51a","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":193,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"e61fdc8b-9439-4574-8b8c-39040c418199","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":193,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"e38a195c-8d7f-425d-9264-7d5dd4427fd2","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":193,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"c830c305-aeec-44c6-b319-6e369e4f3b99","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":193,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"e8594d74-d1b0-4d46-baa0-2f2052f36e7a","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":193,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"c93ba82c-9ceb-4c61-85e7-f945736d1bbb","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":193,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"5dd31544-e5b8-43d1-94ef-b6eb8a85dcd0","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":193,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"f2542f86-515b-46e8-9b65-27884891b6d7","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":193,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"078b8540-8d5c-418e-a204-b2fe1bcf8f30","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":193,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"57a56f15-2377-4124-bc65-be0e06c208e3","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":193,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"2e1b9019-3520-4998-b43a-964a2ab3de92","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":193,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"cc424ed2-e0c1-46fd-8731-ccb61455dc5c","block_type":"box","text":"nomination process.","page_number":193,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"1e442a1e-2f39-4f19-aed8-b7eda0fe4006","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":193,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"8e37d062-e673-4640-9657-7a97b2b528e5","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":193,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"b684af80-68b4-4db6-ba99-1abb42003530","block_type":"box","text":"Change of domicile","page_number":193,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"10cf852f-a03e-4b82-a824-5eb7e58bf7ba","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":193,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"70a0b9c2-1a27-41d3-b049-7cbe624363d4","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":193,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"ad829d34-4628-42f1-8aec-a74d2c3d43bd","block_type":"box","text":"immaterial.","page_number":193,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"a2f8a501-f73b-4a73-853c-4cc91676e597","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":193,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"6f0836a8-7dd1-4597-bd74-09286e99b035","block_type":"box","text":"with our clients’ financial interests.","page_number":193,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"30a9b4f7-3d69-451a-bab7-8991a1d89bb4","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":193,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"db49fbbb-a8f6-49d8-8e3d-282188a47a03","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":193,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"b1ab6b13-adcb-49ee-8e5f-eb8f673aaa9c","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":193,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"26a3bccf-13cf-45b3-b1c9-c302b0626d61","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":193,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"38c322ef-226d-41e1-afca-ef63ee3c812d","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":193,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"527123e7-a584-43f6-979e-dc96c2133e65","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":193,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"03037f56-03de-44b9-b491-f2969d533c78","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":193,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"1b2316a2-0b93-4044-a4f8-98d3f07c7b5a","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":193,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"77ae120c-845c-455a-8999-5a86e4869251","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":193,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"d4e7073e-f35b-4d79-b8da-23166e47aae4","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":193,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"7bf02ec5-1e3f-490b-a638-71516aa2399e","block_type":"box","text":"relevant to a company’s business.","page_number":193,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"78825de0-633f-4bef-9017-b6d34b100207","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":193,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"fcf343d7-27ea-418e-a358-44216b16c9ad","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":193,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"aa2672f9-574f-4125-a75e-1c4d19d98652","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":193,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"e4da843e-2d1d-4edc-9711-4e5f52137845","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":193,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"255ca542-608f-445b-885b-52b2cc245b02","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":193,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"695da739-e711-4644-b400-c917e19c0eba","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":193,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"3d314e72-338c-4666-8908-768ed89668c6","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":193,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"f00f6af7-f125-450a-990b-cf6eb49d874e","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":193,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"fd9598bc-bab0-4382-9aa5-c8148e9eadd1","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":193,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"21302117-6f1a-4020-9ba1-d871ef2cb90b","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":193,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"5834d01c-10ef-4e1d-9d46-95f6666c148d","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":193,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"03f57b1d-2867-4f15-b7c6-5bdeb00bc4d6","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":193,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"1a79d8d1-64b4-476d-85a8-ad3c8be1f3ed","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":193,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"c097e529-6442-4d34-8847-56f02fc13e71","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":193,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"ebe0be06-d941-4cc1-a951-cbbd879eb21b","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":193,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"b8ce33f7-fcfc-4b70-99ac-74c6ff89f2ac","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":193,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"80e63fca-6e8e-48da-9aca-a79d59db8509","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":193,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"6de15da9-c505-4151-abf0-daafb5d38753","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":193,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"f584c19e-7b17-4a3a-8686-93c787dfff7b","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":193,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"cdf75a4a-ea37-489b-ab8c-c33c82fe4311","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":193,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"fd508485-8b05-4c89-900b-4156c473be15","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e9ec86de-2b6a-444f-95f4-c610ad0dd8b9","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a541eef0-96c8-4189-bad5-01735aff4038","block_type":"box","text":"NM1026U-5978945-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6adc4b19-6267-4ca3-ac2f-d8a782052d71","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":194,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"38921be0-76c7-4fa3-aa36-0a968b94309b","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":194,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"bc3d62e2-855c-4ab8-841a-f6c069db0acf","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":194,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"321db2b9-5e75-498f-94fb-68c0c482db58","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":194,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"0db28073-f53c-493d-8cc8-73ad575f5704","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":194,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"19d1b1d3-aee7-419b-974a-58bbcdf1d9e6","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":194,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"65d5d039-b7e7-4d87-b33f-fff003469f9e","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":194,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"59111af5-85dc-465f-8ece-f290c5ff4c9b","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":194,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"f406c34e-5523-4495-b5ab-7be9580cf6e3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3374c0b7-2d74-471c-b3df-8a68d52fe7f2","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"724efe1f-f3b1-4b7a-86e0-7889e3e82909","block_type":"box","text":"NM1026U-5978945-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7c7cb3fe-c69f-4e66-9889-478146a1f32e","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":195,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"ee455597-4621-4f27-b39d-7f25193f38ba","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":195,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"ed58dcd2-5e3c-4bd3-8b97-fc197f6b1fe6","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":195,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"6e118245-c505-474c-aba3-7f27c37fe6d9","block_type":"box","text":"11","page_number":195,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"f7e0abca-7534-43e6-a6fa-97448c299cb2","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":195,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"5ad54de5-f93c-40c5-a422-26168ba4f515","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":195,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"be7592a4-acf0-4917-946c-87efad0ee9ee","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":195,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"8d75cb05-018b-4e1a-93d2-171088d86160","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":195,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"54c99f48-e1ef-43b3-aa18-451ac05d81a8","block_type":"box","text":"regulatory requirements.","page_number":195,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"90bc7328-9319-4072-8f9f-6831ccd51eb7","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":195,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"cf52d242-1c61-4fe2-8e6e-0470a6f7c6d8","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":195,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"b1b5a07e-0fa3-438b-b9b1-c8dcf5cd7280","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":195,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"35849aed-b889-4add-bb16-95319323751d","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":195,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"a3c550df-62f7-46db-b408-da7004a61928","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":195,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"ef1135e3-6d23-48ef-8201-2dfe1dfff871","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":195,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"43d65d0f-b5de-4707-959b-bd4a98645aa3","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":195,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"cbac34aa-1c20-4c37-bab8-7f467f20162a","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":195,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"61e3e22a-3fb9-42ef-bfa4-3558143f910f","block_type":"box","text":"returns.","page_number":195,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"1ac1422b-1f00-4620-99e0-7b77ead82781","block_type":"box","text":"KEY STAKEHOLDERS","page_number":195,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"f48e9031-572a-41f6-9a2f-506b3a617705","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":195,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"217829e1-85a0-496c-b514-1fe74ab8715f","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":195,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"f9a4de8c-a890-4cfd-9b3b-48472cbba35d","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":195,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"44c80cd2-c89b-48d6-9d13-2ab6052324d1","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":195,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"2687216d-94af-4b93-b745-556f1e5449b1","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":195,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"7d26eb8f-99fe-4c5f-8845-da80adf2ca4e","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":195,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"86a4058a-f3c4-4abf-a00e-861c39d98ab6","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":195,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"aa7807e6-1d72-41d9-a4c3-e33a7abde14b","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":195,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"85d64fa5-75e6-4882-9a37-a4f2d9103899","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":195,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"8ffb1a66-0ee7-4839-8dd9-5f18e2c5aae3","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":195,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"66faa983-59fd-43a1-af25-0a14f9ad9be8","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":195,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"e7086088-b3cf-4a6e-9137-53c659ce1e95","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":195,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"194d4751-34c1-46a4-a3b3-ee1be80c7fcd","block_type":"box","text":"i.e.","page_number":195,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"ac0926e4-fa13-4026-814b-e39c49ef63b1","block_type":"box","text":", one in which global","page_number":195,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"8399b848-2f98-4dc0-83e0-d8faf4620d62","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":195,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"18ffb018-58df-4626-9142-e5fc50c67016","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":195,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"046727b6-d76b-4c5e-8e9d-3efde7b5bf60","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":195,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"50aa3142-4d43-48cb-8d13-36ec019a86b0","block_type":"box","text":"client.","page_number":195,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"8946402d-e8ee-4a7f-93b7-e56e2b5c9418","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":195,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"cb4e8667-7603-4724-a87a-7cf6e8cd96f1","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":195,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"8c4c5f15-9bbc-4d27-9fc1-459129f20d98","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":195,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"a0a0616a-2722-455c-86fb-428283415076","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":195,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"9003ac3b-b017-4eb0-bfb7-2ee52dea366a","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":195,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"6e0d57d5-3dda-4b67-b907-c10fe5332e6a","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":195,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"5be0ecdd-56b8-4cac-bcdc-f116459b0268","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":195,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"df07db5e-c9ac-4782-8ffb-816aeddb7d74","block_type":"box","text":"1 and 2 emissions.","page_number":195,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"18fd7637-0b3f-44f5-84b3-7482b238b8b4","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":195,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"bfe5afad-0189-431d-9acb-1b718fb6c773","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":195,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"1ccc61cc-85b6-4974-a283-97ce64be175d","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":195,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"153395c1-aa30-4a49-b995-04b5a4981d3d","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":195,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"fe3a43ca-0ed4-4d13-a3d4-2a9878d177b9","block_type":"box","text":"11","page_number":195,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"a6e9627a-b1a5-45dc-974d-d3617cd62bb5","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":195,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"76714819-f9ba-4ca3-8704-8c7c36a2dd08","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":195,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"7abaf4d6-4a2d-4b43-bae4-d6f413bea33a","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":195,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"42abbbee-1e94-425a-9bab-21dc2c6287d3","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":195,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"1b88c42f-709b-4bac-b1d8-dd6c3590aafa","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":195,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"bfbd3cd3-bf90-420a-b877-40c47ec1bd8e","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":195,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"0767a235-f490-4e98-972a-4575980ab127","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":195,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"8b262899-149c-47fb-a3cc-592bf2f46bc3","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":195,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"5f13c263-28cd-44c9-b807-e2df8e49da63","block_type":"box","text":"sound governance framework.","page_number":195,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"a0b882fe-920c-489c-acf9-e58ffbd457a9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"132466db-a2fc-4a50-8c0c-11aba46661d9","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9b436c88-2d65-495a-9953-171a9430626a","block_type":"box","text":"NM1026U-5978945-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"765ae521-dd7c-4a6e-8cbb-d7c1c04983b3","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":196,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"f1b08b58-2b5b-45b2-a274-ec355acd3ebc","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":196,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"a24261bd-a9ad-4bc7-a2ca-9d700c41d498","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":196,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"a5d3a308-44b8-4b8c-bbde-1656df832f64","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":196,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"1ce66991-d405-4064-bb0e-a1b26a384d35","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":196,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"d2a89eaa-616a-44b9-9058-4156d136a6e9","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":196,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"6ee06cb7-99ef-410a-858b-c9946905da16","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dcc1c662-edf0-437a-8a94-837976eed754","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6e0bf363-d151-4588-ba92-bdf57c961c89","block_type":"box","text":"NM1026U-5978945-196/232","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bc6f9192-836a-4993-99e5-cff6a35693e1","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":197,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"7b566bb8-27bf-4dea-8770-fa229af25b26","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":197,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"1b474fc8-b449-4088-a203-b6aa1e3185b9","block_type":"box","text":"Oversight","page_number":197,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"aa666f7c-649b-4c21-82e8-d0a45c7efd58","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":197,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"75d816a8-2293-49f4-ae61-63fb0dc9165a","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":197,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"0551195e-e3b6-4f00-931c-33b1eeccc940","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":197,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"6adc1e7c-14bd-4b8e-9262-11836ef5cac5","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":197,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"9a853212-9cb8-44f2-a87c-3c06cbed6038","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":197,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"81492b2b-a5aa-46e7-85cd-2d2f602b7c5e","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":197,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"448d3e5b-abd9-4459-86ee-0dde9d617803","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":197,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"e96c72f3-5ff9-49da-a2a3-0606b53343c6","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":197,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"cf7c969e-d589-46af-b276-c41b0d1526a0","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":197,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"b22e05ec-5db3-4357-b849-de79e749ca99","block_type":"box","text":"relevant active equity investors.","page_number":197,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"74069af9-94d5-4d6c-9048-a7a08b87359e","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":197,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"7baf019f-67c7-433e-8110-357e1fcdb5fe","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":197,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"08976f9d-b2f0-4f06-a0cd-3379f468d0b3","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":197,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"35a1077c-1134-4e18-851e-fdaee261a06c","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":197,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"255d5b00-f28f-44fc-b045-3262ed89d6d8","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":197,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"a1644024-7c0a-46d5-9c87-0db2ba7bb030","block_type":"box","text":"third-party vote services providers” below).","page_number":197,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"36add895-d77f-40ef-b9b4-9df2d5a19482","block_type":"box","text":"Voting guidelines and vote execution","page_number":197,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"7adddc6a-ac14-4959-97fc-f5bc910d569d","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":197,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"ed9a8d04-e351-475a-8f35-3b35571c0695","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":197,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"2b9a53af-d10c-4ccf-b329-22f94984b85f","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":197,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"ba7742e5-d878-4691-820b-a1c86e2f5f4d","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":197,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"d97ca98e-9f26-4f32-b0c1-d4df857eff94","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":197,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"4d4566d7-0edf-4345-a8f2-1bdb927dc503","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":197,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"3bcdc4c9-c68c-4f79-8680-ab0c2b577c81","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":197,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"a2a49a89-f8e9-4ad7-945e-9b250705c3b3","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":197,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"95c6e996-d515-4c95-9ccd-f45fbbe59908","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":197,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"cef51d62-ef66-4f5e-b25b-4ff8a3c7a059","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":197,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"04cab951-4726-4c46-8705-b442c16a7190","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":197,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"8b0743a2-d8da-4280-8a15-5371bea3dc99","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":197,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"4663e395-1eaf-452d-a00e-ce3792597c0a","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":197,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"56ff2f35-46e1-4c46-a195-bc809ff417e0","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":197,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"291a298b-53ff-4558-a3a7-e84c01cfc471","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":197,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"763af557-931b-49dd-ab02-2bf7c50e0b0d","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":197,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"f38d3705-5d6e-4831-ac93-dfa3179dcc67","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":197,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"85610829-6f40-4a38-97f5-c684a0516782","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":197,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"f5d85218-ff94-4ae1-928c-0daf92eb8261","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":197,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"c4ecec53-695c-43f0-b9ae-744cbbb7d031","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":197,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"d5bb0207-29af-4add-8b2a-35dd0438f914","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":197,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"f9c774d1-4487-4033-9d2c-9b485b638ca5","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":197,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"93f27418-bd02-468c-8c6a-39f1e5ea357b","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":197,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"cc439697-a13f-4247-b929-92023d38d8df","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":197,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"22308f74-583f-4b98-a1c1-eae85350047a","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":197,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"e2c55456-0f0f-4edd-a881-55367d21baaf","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":197,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"767ae1c8-c05d-49f2-b559-da0e58e3a6db","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":197,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"3092d803-0a8a-4b82-b3d8-7610114ae81f","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":197,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"45f153c8-af20-4927-87e9-92205aa71618","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":197,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"865b8014-d73d-49a6-9b20-891208525501","block_type":"box","text":"Voting Choice","page_number":197,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"c314f8db-0888-4294-a948-ac5d2b9003e6","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":197,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"a34e2f70-2f8b-4203-9282-50f77b2575b8","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":197,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"9d46cef3-f7f4-4841-a999-37caeb11af73","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"11b91b73-0e57-4b5e-95be-8aa056a3558e","block_type":"box","text":"Global Engagement and Voting Guidelines | 17","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2253fe91-3aae-46db-ac52-faef41a99575","block_type":"box","text":"NM1026U-5978945-197/232","page_number":197,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"59fe9891-ec6a-4ed2-8635-26034083e627","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":198,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"0541c121-0e77-4f1a-b890-79c7d275d6cb","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":198,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"ec41913e-4adf-4fb6-aa42-36afb5ea35ec","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":198,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"701c0790-b27c-4166-b67d-b3588b409e48","block_type":"box","text":"strategies.","page_number":198,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"40c00660-4eba-4375-8c33-c893696e41e9","block_type":"box","text":"12","page_number":198,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"173aff1a-fbeb-4311-b109-96442c1317b8","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":198,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"dc6fa574-1f6e-4bb0-9d7e-cb53841f3ff1","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":198,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"a6723c73-9c28-411e-903d-cf9890160399","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":200,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"2372095a-de10-4f63-97e6-a848a36ccf82","block_type":"box","text":"at the sole discretion of the reader.","page_number":200,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"e5f0df3f-c241-471d-b93b-e1df9d9799d8","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":200,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"6f60dba7-9249-457b-a84b-0af69bbf931b","block_type":"box","text":"©","page_number":200,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"1beadf1d-edaa-4fc8-bc9e-f61c33fa493e","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":200,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"1c943ab7-ccca-472a-bf32-3558c866df62","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":200,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"1492b882-47a7-4810-af59-633e1f7dd63a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"578d46df-66de-461d-9f88-0378c6a65223","block_type":"box","text":"Global Engagement and Voting Guidelines | 20","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b09be785-09eb-4bab-a5b8-3237ec8c1554","block_type":"box","text":"NM1026U-5978945-200/232","page_number":200,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9c16d0ef-2d15-4e51-b302-aedaf73bdebd","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":201,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"2940a17d-8bd2-44b0-aa35-d0a861a939d5","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":201,"box":{"x":247,"y":90,"width":486,"height":11}},{"id":"0de4d16c-4a17-4475-86d9-b9fb0b04df5f","block_type":"box","text":"Effective Date: January 1, 2025","page_number":201,"box":{"x":376,"y":105,"width":227,"height":11}},{"id":"d183e77f-86a0-4cb0-868c-1e96261de22b","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":201,"box":{"x":231,"y":128,"width":515,"height":11}},{"id":"2578a2a0-94a4-4b30-96d9-71995139cd15","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":201,"box":{"x":306,"y":151,"width":388,"height":11}},{"id":"0eb5a1c4-173e-43bf-9202-004f4e864d4b","block_type":"box","text":"□","page_number":201,"box":{"x":184,"y":173,"width":14,"height":11}},{"id":"23d82421-eb9d-4af9-8d43-104238c9119e","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":201,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"53af41d1-89fd-4e2d-82f5-d5e7f785c8e3","block_type":"box","text":"□","page_number":201,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"9c6747d8-94c3-475f-aaab-b998fe2f35f3","block_type":"box","text":"Money Market Funds","page_number":201,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"73d6b57f-e2b5-4c36-a1c4-c2e6bd47926a","block_type":"box","text":"□","page_number":201,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"f82c1538-cb0b-49e7-a4e8-09c2ba2be2f7","block_type":"box","text":"Closed-End Funds","page_number":201,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"f83fb61d-682f-4182-8d0d-ee90b1a231cc","block_type":"box","text":"□","page_number":201,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"27365e38-3afb-4d60-80bb-96e54955bb28","block_type":"box","text":"Other","page_number":201,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"1b63e9b2-4e76-43d1-88cd-598569e82790","block_type":"box","text":"Objective and Scope","page_number":201,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"37802aeb-16ef-4ef0-b16b-f423e398a29f","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":201,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"19fdfe5d-9b70-465a-b452-caf7bea1b5de","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":201,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"06101083-7641-47d0-9c7d-be6d0bfd9491","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":201,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"70749b93-29dd-4a45-858c-474310a0522f","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":201,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"12d87354-b1ef-4ad1-8fb0-0a11e05131d0","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":201,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"ed7eabd1-0115-4af7-a4fc-1554b92d8b06","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":201,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"70458633-920d-49cb-a6df-ec0bb5965b5e","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":201,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"262c1d36-cdcb-4727-bad8-8e364f98f50e","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":201,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"7b89fb00-0a9e-4293-8841-bd1db7e3460d","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":201,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"2d6ecc34-2719-4f8e-bd7e-7f4922e1be47","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":201,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"c700c2b6-4cd1-4a79-b886-c45d8a27281d","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":201,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"672c3c6d-ea26-4837-ba2b-b06afc1a4caa","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":201,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"ea7ee7ac-52b0-472e-8287-edd94126a39f","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":201,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"c3bb6d34-5fbd-4060-b845-2e2e3d44deb9","block_type":"box","text":"Appendix A.","page_number":201,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"bfed8bdb-4b96-4071-91fb-9396f0f83c73","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":201,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"7a72463d-f24e-4795-9738-74dbf6d0e952","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":201,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"d4ac9141-19e3-4de8-9172-22ee53ed5f1c","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":201,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"6fb28231-f423-47d0-8a14-1c91437a1313","block_type":"box","text":"Conflicts Management","page_number":201,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"66072824-695d-4bf9-b05e-e568b52c67d7","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":201,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"0af3e9ea-0b4c-4a68-ae27-899e91fdfc62","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":201,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"5a3e33c2-1345-4f6b-b62d-b00a4a6334ab","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":201,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"60047690-4b1d-465a-890c-c3a3c3ff44a8","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":201,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"251aed7f-b789-4b99-b03d-f488f6cd13c0","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":201,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"52a2b63f-4174-44b7-8da0-d9005adc5076","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":201,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"ac2cac78-4189-4433-af45-24ab1e20538f","block_type":"box","text":"connection with proxy voting.","page_number":201,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"fce29a20-d445-4e05-a41c-75c2459240cd","block_type":"box","text":"Reports to the Board","page_number":201,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"683d984e-03a0-4d9f-b282-b20bb0eb031f","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":201,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"5674a6ff-8f7a-4a74-98ed-4b54800b36b7","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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These are topics that shareholders may have","page_number":206,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"2a622ff4-30b0-4ea8-807b-59420259f2ea","block_type":"box","text":"the ability to vote on at shareholder meetings. 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Our regional voting guidelines explain how the BIS Global","page_number":206,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"e1c90ed1-4fdf-4423-b9ef-1f9b3dae83bc","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":206,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"894bf5b0-35e8-431e-b4e8-f508a0934130","block_type":"box","text":"4","page_number":206,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"b3c4fc01-11a2-4f35-8e44-ba9a324f0d45","block_type":"box","text":"3","page_number":206,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"dc483208-5c1a-441a-99c5-69219e858eec","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":206,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"cbc8f5cc-8b7a-40b4-82d6-69b60cf64024","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":206,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"28c294f6-fdb7-400e-9000-a871984629ec","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":206,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"cfc1d37b-07cd-4c9d-9da5-b3bac7866238","block_type":"box","text":"4","page_number":206,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"4d7c0b58-f9e9-4aaf-bb73-21e875782af8","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":206,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"363d21f9-0143-4e9d-82ce-3ab69c69ae3e","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":206,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"51a8d218-3746-4272-a50f-13bdaabb0ab5","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":206,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"6f8b937a-4cfb-4d63-87b7-9929f18512fa","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":206,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"334bb9df-73cd-426b-9114-3f72d013b480","block_type":"box","text":"guidelines.","page_number":206,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"8b5a0920-c3f3-4c01-8051-bb137292fa7d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"53460647-236f-4f46-b2b6-1cc597777a63","block_type":"box","text":"Global Principles | 4","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1cefd0c7-7e5a-4939-928c-5c1419a1eb78","block_type":"box","text":"NM1026U-5978945-206/232","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d21aed5e-67df-49d2-a38d-56678bda6ec8","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":207,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"19f7ee74-7b77-4249-866e-87d52c6bd99c","block_type":"box","text":"Oversight role of the board","page_number":207,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"9e8c2558-3b9d-4c1f-94d7-06b4d9f42b28","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":207,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"aa8bc449-9d6f-4f45-8149-534a836083fb","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":207,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"774a26d9-baaa-4d1e-9d41-ec887f06c6e6","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":207,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"557ffe4a-8d57-40a3-9e18-5317d88dcbc8","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":207,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"ebe16f10-a2a2-42ab-aef0-2a11dcbf1c00","block_type":"box","text":"long-term financial performance.","page_number":207,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"fb373078-ef77-4f98-a0be-0918ea0ddac0","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":207,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"230833cb-8f9e-4318-b20e-7b0382ca960b","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":207,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"c18c8d50-a994-43a7-8f79-75a5cc44b0c5","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":207,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"80b15379-c4f7-4dde-8300-786290863dfb","block_type":"box","text":"the business environment in which a company is operating.","page_number":207,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"7c9b9a40-69bf-4925-8ea8-5b5edf061297","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":207,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"9056896d-84ab-46e4-9652-42d45e87d97b","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":207,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"a48578be-4a40-4689-9a12-eb922cb431d8","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":207,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"5ff84bd0-247e-4ffd-8bb5-d11ee9b5c375","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":207,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"fa5b94e7-c48d-4707-86d7-e00feba4c861","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":207,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"414cadb3-7b3d-4411-af7a-251425035653","block_type":"box","text":"mitigating such risks.","page_number":207,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"4a58eeb9-0418-4ea1-81aa-98683ccbab84","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":207,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"4920cd48-b94c-42aa-855a-9f39a2e8e83b","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":207,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"a0d3d0a8-c0c5-4f84-8f34-7b21f5b5c3ef","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":207,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"7bee5f57-684e-43a6-9454-e0b876195406","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":207,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"5a0a1cf5-c6b0-4282-842b-518f569ac7ff","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":207,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"dd3787c5-299b-4ea1-a1c7-064c3ebb8b00","block_type":"box","text":"strategy.","page_number":207,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"c706eab4-2a94-47e9-9f2a-6a806854a05b","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":207,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"06844550-185b-47c9-bf33-9c3e151fdeda","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":207,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"2e54814a-7764-4f88-b196-02de32ced38f","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":207,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"979334fa-88c8-48dc-849f-c50961d2a680","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":207,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"009c0f58-3afa-479d-aeb4-853c0ad4d73a","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":207,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"27e64f97-09a5-4b15-90e1-362f1bf9b3aa","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":207,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"d0ee4dc4-dadf-430d-928f-dc8bb46d0368","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":207,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"8f09f6bb-e7ee-4ada-a5c0-9a67ca9a9581","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":207,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"ecfdf865-4dd3-4463-be6d-7b95e7ab1734","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":207,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"f66d5546-5828-48fd-a579-124b6569bb74","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":207,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"00e636b4-1f8e-4a65-a010-6802710168b6","block_type":"box","text":"Regular accountability through director elections","page_number":207,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"00086d30-e353-4f47-9731-39e36b86842c","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":207,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"9b6db80d-ea0d-43c1-81db-87d7de0467ae","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":207,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"0e9165ca-7ac2-4156-a148-0286cafe37dc","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":207,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"35d647fd-d88a-44d5-b16b-8f1db79ed28e","block_type":"box","text":"5","page_number":207,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"f557cd17-0c88-428e-b176-e10dab0a8c71","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":207,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"e7eabd0b-d564-4c00-b70e-82ff74933704","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":207,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"ae596b5c-d79b-429d-a915-0ca2dac9160a","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":207,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"5cbd97a4-4770-44f9-876e-b4a71dca7452","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":207,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"5551f79b-1ed7-4c88-884b-3a5a98ff30a4","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":207,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"6ec9da7d-afde-42a7-8524-3e2f83d8e697","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":207,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"9c3c4945-e9bc-4f85-853f-208365473e5c","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":207,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"0e1a84ad-3203-4a77-96a3-b666d104c400","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":207,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"c739df3c-7de2-4ef2-a1c8-1b16e525e766","block_type":"box","text":"5","page_number":207,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"aedadd7f-b999-4bab-b4a5-2fb1e01b5c05","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":207,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"bf95fe91-8f69-4482-9a97-4287f9bcbc3a","block_type":"box","text":"market regulation or voluntary best practice.","page_number":207,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"40048c3d-7d49-4d70-836e-6f2fae70d5d9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"decbd510-7d63-4a04-ae14-a5b048c00129","block_type":"box","text":"Global Principles | 5","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ac5e923a-0ff9-44d8-8835-2857509591cc","block_type":"box","text":"NM1026U-5978945-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b2d121f4-c195-4eda-9283-d2df33499087","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":208,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"731fc9a3-0385-416c-87d3-d23e62686b83","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":208,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"7c940221-1ded-44f2-876d-e26a14918778","block_type":"box","text":"recently.","page_number":208,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"dc8e6d58-53c7-4dcf-b1b3-7f6470478b1c","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":208,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"61a57981-763d-47d4-96fe-1d9956dfbe4c","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":208,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"2269ce4b-2844-45a6-a64d-2ef498a47306","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":208,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"c2742324-7153-4cbf-b468-f1ab6710ca5b","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":208,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"0928fd45-ff3d-4d71-990c-5fd946ca43fe","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":208,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"e5e79545-32b3-4b84-b751-00024b58c3b5","block_type":"box","text":"Director independence","page_number":208,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"3cc0e48a-68d3-4e25-9e5d-380e03bed76f","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":208,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"7f13b687-2fad-4642-8acc-2f5081952631","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":208,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"de511340-ec78-489c-8cd2-f3ffe7cf7122","block_type":"box","text":"6","page_number":208,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"76e6ecb1-6613-4edf-94a4-68728e7d8c28","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":208,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"40042e5e-ac9a-4281-a277-3da8adaaca1c","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":208,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"3f6d9e71-d467-4a71-aa55-967866618a92","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":208,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"8a0d8ecc-d25e-4aea-848a-535d2574591c","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":208,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"9c11e811-1410-4520-9a21-c7d2fc808368","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":208,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"e7f1b441-95f5-435b-ad66-b463b3cbcb4c","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"8e7ea1eb-ac3e-495d-a0fc-c3f7ed98d456","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":208,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"1d8f436b-3765-4715-8e7b-51e59220768f","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"6378eb89-e423-4b8e-9fda-71876d7ca481","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":208,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"ad589d3b-6c19-46dc-8f9a-0deb88a513d5","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"1d8b859d-74bb-4b68-9edb-c03128ceae11","block_type":"box","text":"Interlocking directorates","page_number":208,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"6a96809a-a892-4c41-bc08-beba606a8b74","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"036538c6-db02-44f4-805f-cb597bfa905b","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":208,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"58ac5ff5-e66d-45d4-9ec6-57fe11b7b6d0","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":208,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"fa68786c-3201-45e9-85a2-3f5a314bcfc3","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":208,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"449b6e1a-a8ff-4891-aecf-8e57414dee4e","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":208,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"d3b6b310-9d03-43de-b0e9-6f81704142fb","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":208,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"02d3b7f1-11c5-4fb6-950a-aa90234583cc","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":208,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"837e2445-7124-488d-906d-ff6054418d34","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":208,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"c4ecdc07-ebd3-483e-9bde-8c0ca3c75e2c","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":208,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"8dbbda4c-9c74-41b1-9a23-c25d1ce7f19c","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":208,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"4725d098-ec73-4473-8be6-e83156aa356e","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":208,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"f490a915-5298-493a-b10b-f6819f4d2df8","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":208,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"fc41f037-e892-4147-98c0-e45bb86cd727","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":208,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"dac81fc7-4e8c-4e87-a1d2-35c6d8969214","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":208,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"34c6dcc2-ece0-4db3-b26b-a9b0365c2ff1","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":208,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"25383bd7-03e6-4805-99d8-18563941ce7c","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":208,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"ade57054-62eb-4b7d-abbd-5c442bac2a6e","block_type":"box","text":"Sufficient capacity","page_number":208,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"d14ff1aa-294c-4443-b6d6-760a4dddd1eb","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":208,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"a8490cc6-b697-4a41-8e04-906da501350e","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":208,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"51175cf7-742d-4639-b9bb-057ab008f223","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":208,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"adc5e628-8997-4346-91b2-e75b69532ae8","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":208,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"919b38d9-6c59-49fc-bd32-01319425d82a","block_type":"box","text":"Board composition","page_number":208,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"a67b0b35-c5bf-40d8-a61e-062583413610","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":208,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"1ef624f5-55cd-4ad7-92f7-aa2a21b57874","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":208,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"3f73b280-81c3-4cb6-ad34-70e038608089","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":208,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"99a8262b-f94f-46e6-909d-fdb1588e584c","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":208,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"4cce054b-eea6-4e06-a3ac-0b32fd8d439b","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":208,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"96f79ce8-f491-483d-afaf-8fc7f29283c6","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":208,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"e282f0f9-2b22-4748-9a03-5533ee192773","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":208,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"ae51f697-092e-41e3-9858-afe8dc9b70d8","block_type":"box","text":"6","page_number":208,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"0c67c5bd-4c9c-4082-a553-751157cfe834","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":208,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"d4796225-c2bb-4574-a615-ad4a41456b20","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":208,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"ea969a63-c614-4e72-b84f-f20f741fd737","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4ae2f9de-13ff-4e10-a6ff-37cb781000fc","block_type":"box","text":"Global Principles | 6","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"855958e7-d06f-4edf-91ee-21fb05a3cb17","block_type":"box","text":"NM1026U-5978945-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c68c5cb7-7248-4711-b103-b77d1e8a11a5","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":209,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"aeb99fcd-dc58-4b36-8266-48556862984a","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":209,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"6f569445-aa7f-4b4a-a672-923f70f3798d","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":209,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"ef36dbe8-b768-4c86-b26a-023ddc570959","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":209,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"e9ea3543-c785-43ea-a165-e71f561772db","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":209,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"4f44c3dd-ddde-452f-909d-9ff4e97e5ac4","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":209,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"c7b27f04-7b75-4072-99aa-e3da4212a294","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":209,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"00b21d37-3cb3-4970-a21f-38a3b9ac3465","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":209,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"e2e651fc-9675-4f86-91e1-e9be2b7de609","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":209,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"b82e4d16-e397-447d-8455-38ea26952b95","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":209,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"2ad09a7b-994b-4e09-9e73-2279545f9fb0","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":209,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"c6edcfcc-d789-4a90-8fc5-c42d75a29940","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":209,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"f806e214-e7d6-4704-927a-d4bab9ee6f7f","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":209,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b188eb56-9ae6-40ad-9fcc-43463c5f8c91","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":209,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"5e5a4db1-2474-42a0-83ef-962698dbe1c5","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":209,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"651da1c0-4010-4ed4-8168-616dd1dafa0f","block_type":"box","text":"systems.","page_number":209,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"7c388bfa-4a40-4cb7-8617-6f0b8d28af5a","block_type":"box","text":"7","page_number":209,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"cc91205c-e4e6-4d2d-8b25-514f7656d2d0","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":209,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"c18a2376-427a-4f23-a20f-c0dd37adb9ee","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":209,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"64a09e01-19b6-44ed-8542-d1212e0f527c","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":209,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"d0f164e1-2ab4-43cb-8d35-a59e6fef7263","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":209,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"05eb364c-85b9-481c-b2c3-165630b5761a","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":209,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"0edd23a7-9d81-45ee-961c-50697f498da5","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":209,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"dff688f0-af78-4ec2-8f43-edd3c2bbfcd2","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":209,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"e376a6e8-b253-43cf-8752-238ebcf1bbb4","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":209,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"ddcf0e44-2c64-4646-82ce-c64d37eb0418","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":209,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"39979290-0f57-439a-a792-1869cf716754","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":209,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"3748924e-8c87-4180-b535-82b1ce9e2208","block_type":"box","text":"or internal audit function.","page_number":209,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"5eb25dba-a50b-49a5-be93-2a7d0b20f56b","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":209,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"b1a88bff-8b04-426f-bcf8-8f43c398d096","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":209,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"27acb9da-deac-4e5f-97f3-79e0461803d0","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":209,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"7b6be383-38a4-4d81-ba23-107f6701f9e9","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":209,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"d7896b3d-2e95-4a43-97d3-0db21f9ad3fe","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":209,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"b44c2714-f16b-4fbf-933e-0bfed37ae663","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":209,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"63628224-b417-4e3f-b2ff-a6c85f601848","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":209,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"d8ba3667-c61a-444f-99d7-dd3ece521f64","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":209,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"37a7b486-fb7f-4ea0-aac8-d4f234a47bf6","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":209,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"c27bb6c0-5121-4e55-bf65-d1495e5cfdef","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":209,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"ead0ff7f-7c9e-4fbc-9133-c7f1c88c1c0c","block_type":"box","text":"risk.","page_number":209,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"d43ced0c-f3f5-4e62-baca-0bdf4def4634","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":209,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"479772de-ab8f-4bb5-be48-e3d7063494c3","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":209,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"d9b1b48a-bb27-4186-9718-24d05d46cbc2","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":209,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"f1a980bd-d4e6-4e80-b121-b5e8d788f9dd","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":209,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"91e5d5dd-0b07-4010-92d1-999a401c923a","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":209,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"e9591e0c-830b-444d-84df-ba76adb796c9","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":209,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"a30a4c7f-52af-4509-9123-9b7317231470","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":209,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"31c4266d-d312-4fd5-acfa-b20852d04196","block_type":"box","text":"7","page_number":209,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"2d272e36-d359-42c4-b26b-ce7f0d121b04","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":209,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"7cb41677-608b-4a2a-baa1-32286e8f8f8d","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":209,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"81a65ed5-67d4-498e-8f36-2fe4d3a9eb37","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":209,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"841f4c5e-471e-4c0e-accc-e7f84590f0e7","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":209,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"37bfd646-4417-4144-abf7-6fa13e86f3b1","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":209,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"e6bcd08d-ab6f-43ee-bc49-c1af4275bb91","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8deab863-cbcb-48aa-a9b5-5b4c409e4e08","block_type":"box","text":"Global Principles | 7","page_number":209,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"2274b5cd-8409-4403-9a73-f20b421abfb0","block_type":"box","text":"NM1026U-5978945-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"548aa1a4-0aeb-4fea-b982-a975f9b11fbd","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":210,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"955e012f-fcb2-41a2-a632-4637e42b4079","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":210,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"ea2771f5-e6ab-498b-927f-10e9eee97dd1","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":210,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"c3f2d615-bf62-4c2f-bbc9-b28430042fbc","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":210,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"9276f7f9-9dab-48c4-98e0-f27ddc640ab1","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":210,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"d1aaf76c-b5b3-4af4-b152-d218716b5ea9","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":210,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"72ed66a6-78ae-41ae-a0aa-f150b61695f0","block_type":"box","text":"minimizing costs to shareholders.","page_number":210,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"ee3327ec-5fd6-4d5f-affe-44673884614a","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":210,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"564489f9-2086-41d5-b665-461a54bd524f","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":210,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"62640a8f-d583-451b-89a1-25c9bb6470d0","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":210,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"2b460f3f-6510-4787-ab47-28cfd5d8c8ad","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":210,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"59230ebc-93c4-4e71-9406-34bbac9fd9e6","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":210,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"22ca1891-ae7f-425e-9d80-7dcc6f4cfd01","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":210,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"9b629cdf-6b51-4de7-8c1c-e47804fb8541","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":210,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"e5e72757-1bbe-4645-891f-58775d5318dd","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":210,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"65ad8e91-4553-46a3-a522-d540b6a320bb","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":210,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"5c5f9ab7-66a3-4b50-adde-b826df1963e0","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":210,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"ea75f775-3807-4ae2-ae6b-6b2b09687754","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":210,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"4d9838f5-dba7-46a6-a737-c0dee0387707","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":210,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"7c386afb-c7f3-4b8f-b983-7c6c1107caed","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":210,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"eb21d442-3d2a-4145-ad7c-39a8a6e7f61b","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":210,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"41ee7e6e-5fef-4e72-9d80-4d24bea5ffb2","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":210,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"09101fbc-0e6b-4894-815d-8956f7981862","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":210,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"3795f822-99b3-497d-9f39-779ec1ab376d","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":210,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"5dbe8cca-59c5-4062-934c-9c39f107b810","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":210,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"ca666150-732e-4062-aaeb-c6d399e2d315","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":210,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"a4319aad-1333-4da6-958e-1183f4a29db1","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":210,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"5bf5539f-2f3f-4399-979b-94d087502d94","block_type":"box","text":"ownership.","page_number":210,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"be0c7a09-768c-4caa-8370-3310a1ee7cb8","block_type":"box","text":"8","page_number":210,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"b9980c0d-75af-4e2a-8bd8-c07f0297a91c","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":210,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"5c3afd3a-923d-4017-b86e-feef80086a07","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":210,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"8b72bdf4-ea8e-408e-a8be-2327ddcd56f4","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":210,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"84b600c2-dcf8-4d9a-96c7-8c52ceb1b857","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":210,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"4eafea3a-d32a-46e1-b3be-5d5210264388","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":210,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"8df9ea31-58e0-47ae-920e-a764ba6e7282","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":210,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"ffcdda1c-682b-488f-bcc0-d77ab669d4bc","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":210,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"8b6e925a-f0d9-4a26-8855-4dc8f68f6d62","block_type":"box","text":"results over a period of years.","page_number":210,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"70121c10-df23-4183-81eb-94b7e8a6e58d","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":210,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"4a637a28-8325-4136-aadf-40417700a472","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":210,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"01cfac77-9592-4432-b6c7-68755d95474f","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":210,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"89ebfef7-6369-4313-a2e2-cf598190a4c6","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":210,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"a5ab761d-17db-4d14-957f-72c2a8f6071e","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":210,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"bfd5650b-abbd-4442-91f2-38f435af3f33","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":210,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"dfce8712-ecf4-41eb-914f-e990d810a284","block_type":"box","text":"executive compensation strategies.","page_number":210,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"010eb1dd-a9b0-4ebc-9b4f-2362229333a2","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":210,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"2345d63f-a4d5-477d-8f7a-d4deb40cf95c","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":210,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"d455b11a-13b9-4d6e-9b5c-1d57151a96a2","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":210,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"c6804aab-8cde-4274-bc93-04c8e06d4e3a","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":210,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"1b013230-96dc-4e44-8549-86b8b1b5483d","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":210,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"318e040b-cffa-44d5-8503-bcff8281d09a","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":210,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"906ce77d-e156-4883-bfa5-3ee0aafb791b","block_type":"box","text":"8","page_number":210,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"7dc9c0b7-1a14-4a70-8c2e-8afb94148000","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":210,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"2be6b129-f128-4daf-88c7-751e4f9dea2e","block_type":"box","text":"different markets.","page_number":210,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"9f4f348a-9cd3-4494-a2e1-d868787363b3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3a5e9c6f-ad4d-43ee-920d-4b856f141a43","block_type":"box","text":"Global Principles | 8","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"54d55ca1-2a37-487b-892c-9631eef6c9bb","block_type":"box","text":"NM1026U-5978945-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"39a287bc-40a8-4169-a96f-a927a682c9be","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":211,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"8cb946db-22d1-4145-b94a-72b458ee8ae4","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":211,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"e3ee2027-ccfd-4061-94f8-b674b4f7256f","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":211,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"2e0a121a-cb49-45ca-b58a-802ef4dd1c91","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":211,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"2b6aed9b-0027-4b52-8f8d-39617b2c1f91","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":211,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"eb292c23-9e94-4779-92a5-c2fc3cc9d26e","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":211,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"b53e9edb-64f9-441c-8aba-b1da205b0ea0","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":211,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"d0947732-6a7e-4ed5-ba06-0f267baa4fa0","block_type":"box","text":"whom they are charged with overseeing.","page_number":211,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"30a6fb34-a2a8-47f1-ad88-513e141381e8","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":211,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"84f6f936-6c98-48d3-a2c4-55ff59926c6f","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":211,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"5fb2b358-1013-479e-8696-e6e674e937c6","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":211,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"28bbf6db-b8b6-462f-a20d-4183462d502e","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":211,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"1251f195-aeec-4927-b8be-926d06ca08af","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":211,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"8cb76d6e-f214-41d8-b79f-d31903bb0593","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":211,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"4eb6b6c2-8ea3-4720-87af-3eae525b4b8d","block_type":"box","text":"structures.","page_number":211,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"1d3e0c99-862a-4d49-b819-4d06001ad890","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":211,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"854e3e26-131c-470b-b375-26b606b95c99","block_type":"box","text":"Corporate form","page_number":211,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"7bf569dc-3f82-45ba-bae7-176cd4cac6e3","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":211,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"4bfcada3-f9d1-4a0c-a80c-a16866e796e4","block_type":"box","text":"the company’s purpose and business model.","page_number":211,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"cb401c66-28d1-4701-8a20-b1934866c333","block_type":"box","text":"9","page_number":211,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"501d28a4-55c0-4713-bd70-b24ae034c4c3","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":211,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"8645e96d-725b-4252-b1f0-f91991cc74b0","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":211,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"a6595282-d87e-4a11-9be8-73384c0117cd","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":211,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"468e0d54-8e65-4d15-a019-876ee153a7db","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":211,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"429247aa-26ce-4057-8b98-78733a6407f9","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":211,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"0e8f9dfd-3757-4cc6-a54c-38396b69be3f","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":211,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"30848f96-2e0a-406a-98d0-abe790104c72","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":211,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"6d6e883a-97a8-4c13-b705-57adc3ff3c34","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":211,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"cb6e3863-5390-42cb-97bf-eb2c64f4090f","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":211,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"98988654-fced-4882-9917-16fe6fcf490a","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":211,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"35294c5f-c7be-437d-85b6-62dc2664d60f","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":211,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"9bb0a1c3-ac1f-4a17-9df5-034dd027a869","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":211,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"dbaee0c4-26bb-4b40-a753-040d330402e5","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":211,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"132ecac2-82e7-407b-bedd-de9b61357a0d","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":211,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"1db9760d-9b2a-4838-83ed-1e31cfa09ad1","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":211,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"d5185258-2ab8-40b1-a65a-7210ea7b43b7","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":211,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"930f71dc-0642-4e67-84c5-5d60cb9a1b67","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":211,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"cd13e7c3-4ad9-4020-a7bd-0446b6b50feb","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":211,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"c7259968-5c1e-42c2-a8fd-a4a47e61c48d","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":211,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"79b1bd3c-bf02-4cfd-ba20-59a647b28796","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":211,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"c8daffa0-5047-4cf9-816e-c1c81846f68d","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":211,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"c53d9ffd-56fd-455c-b5aa-63b984692e79","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":211,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"fceffbe5-dd25-4f8c-8b20-7c26d164d619","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":211,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"eb24a4e2-1288-4384-90fc-216fcc0b3bac","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":211,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"7f4ae1e7-26e0-427b-8395-8e01030d17e0","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":211,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"7fa1aca6-a0e2-4273-8058-da2390ddb796","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":211,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"646a0a47-b94b-498c-8e59-bc635b00ecfe","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":211,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"2fb283f5-59ec-457c-8a84-abab82ff1dc4","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":211,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"c6a41ec0-239e-4594-a0ae-6595f11e1f36","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":211,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"26bb9eee-d5f5-451a-b09a-ec12c16e0fb7","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":211,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"e13e93b5-6ed6-4fe5-9081-22ad3454ca56","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":211,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"1a1325b4-bc8c-4167-a0c9-d1cb4b80b825","block_type":"box","text":"9","page_number":211,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"d6992b8a-dcb1-4930-9ed2-f1e580973c97","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":211,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"40924f35-e184-4d6b-9a0e-0aa87e111c27","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9db6a05d-ca81-4ea7-a513-4de13e7efd29","block_type":"box","text":"Global Principles | 9","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"244b4072-7a2a-42e3-a734-edb12417bf2c","block_type":"box","text":"NM1026U-5978945-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"afc11f86-944a-47a7-b75b-e92d4d4dce4b","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":212,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"77f43d7e-428e-4297-9ed0-d64f44a8bbeb","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":212,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"3c834bbc-55ae-4031-9bce-e06e8cd3b795","block_type":"box","text":"long-term financial interests.","page_number":212,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"14b8c8d2-a97b-4bc7-886c-dc5f8d1aec34","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":212,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"67f60fc8-2278-443e-a75f-0abfc102cd52","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":212,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"54a2d33c-b74d-46a9-b7b1-92288592dcdf","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":212,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"9a871522-6a67-4d19-b4af-33d9a7453770","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":212,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"56e1e98a-a788-4451-b342-a17c97d3e628","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":212,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"b39c8255-0f87-436d-b8f6-fc00c0ab20ab","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":212,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"c1e1035d-a529-42b9-81f0-1e1fc9b5e9f5","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":212,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"7d007024-3040-420d-af25-f05ec58bfdd3","block_type":"box","text":"term financial value creation.","page_number":212,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"31ed0a00-2d73-4fca-9688-bdaf917b25ba","block_type":"box","text":"10","page_number":212,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"ed573f67-57c9-44b6-ab54-1b434c7e6736","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":212,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"771392f9-25d3-4a08-a663-91e84f60dac8","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":212,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"1e116fdd-8c27-4e8d-a8b3-2157e8064b09","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":212,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"2b842b1f-c895-4440-9de1-9ad6e783c198","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":212,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"2a466d73-3885-457c-9f7a-c133d3fcd008","block_type":"box","text":"industry-specific metrics.","page_number":212,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"98535a47-44d9-42ee-850a-54be92148cad","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":212,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"27840baa-0f70-4f93-abd6-f8afba4ea7e5","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":212,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"afd37894-9398-42ae-afee-729f5756cfea","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":212,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"4fb80967-430e-4d56-9a82-ae6f34b8ff50","block_type":"box","text":"11","page_number":212,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"c5506ca8-8f99-4c69-a95c-12e11c1a94bd","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":212,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"545c0e04-89e3-452c-9024-57a53875aa2d","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":212,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"ed62f2bc-0fb2-43cf-bf73-01bf20b733b5","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":212,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"1027483f-1eb1-4694-a27c-c0c23cc65419","block_type":"box","text":"specific.","page_number":212,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"6956469c-e9fa-4aa2-8287-cfe380f3b8c9","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":212,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"55167f96-d61d-4163-a362-18b950b56e03","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":212,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"3aef3096-ea3f-49ca-bdbc-a57bdca905cc","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":212,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"ee5de6b8-8ad8-4e17-a1ef-069ebaa9a74e","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":212,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"6c92912b-7d2c-4e2b-a595-6d78583a06a8","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":212,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"4da5399e-b0e2-4b68-9499-966775a1590b","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":212,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"e5f7ea3c-cd23-4c66-b63c-420c1c1c6c8d","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":212,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"ddce5242-2b1e-4203-8802-58626e6b95cb","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":212,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"fe746afe-140c-40a0-9940-a3215d1cdf74","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":212,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"8dc89812-6231-4641-9c08-bc88b6c32379","block_type":"box","text":"10","page_number":212,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"763c8688-91b5-4382-8c76-c564c682015e","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":212,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"d22532fb-774e-4d53-aeb2-276a2956f281","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":212,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"6b7cade0-ff06-4fb6-a8bd-01105638ea68","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":212,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"5cc3aa55-4c52-4c21-b6fb-03c867fae11e","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":212,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"2294b291-43b6-47bf-9868-f894613eda6e","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":212,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"4d37719b-c93d-4ad1-b9e5-ba7910ac55a8","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":212,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"f31e489d-bbeb-47cb-8b75-53d69941b52f","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":212,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"4b835772-3e92-4c8e-abe9-e1b7214a2319","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8b414351-37d0-4498-a8c0-4448ee5a8a7f","block_type":"box","text":"Global Principles | 10","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"02b62721-90d9-4f9e-8579-8bfa9b35d0c7","block_type":"box","text":"NM1026U-5978945-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f4ff9341-e24d-42f8-bcf7-f16efb5d163a","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":213,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"756e3496-493a-4880-b1ed-07d1e4ceec81","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":213,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"3909cae2-ae80-44e6-bd8f-84a7713425d3","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":213,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"8123f865-7a1f-46c8-8033-2a63a3abcfb4","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":213,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"4de8ca82-d797-4f59-a475-09d103314cad","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":213,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"32fa4c66-bd0a-4419-a3ad-83f79b52fdd8","block_type":"box","text":"12, 13","page_number":213,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"541f29be-5b4b-49fb-8e06-7f8df25b13d8","block_type":"box","text":"From company disclosures and","page_number":213,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"f174340b-e2f3-403e-b4da-1b31fd02ba70","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":213,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"e6307a24-06d8-4692-83f8-b7501f5176b7","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":213,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"527333c7-61a4-4d75-aac9-d84d0e41fe6b","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":213,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"48ba666b-5524-47d7-b0fb-27f63e137379","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":213,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"2d9e1d8e-5f24-47c0-977e-3ee5d3576645","block_type":"box","text":"viewed as best practice in the market.","page_number":213,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"27cf1833-95fe-4446-bdea-bfea9efcb4b7","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":213,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"93c17f8c-b4fe-409a-803f-6bbcc860321a","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":213,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"5774b1c4-9a6f-4aa9-9844-d92047784ce3","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":213,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"875167e4-66b3-43a0-8b95-f6f20db06834","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":213,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"8e7eca12-46ff-4fcb-9c1e-d77ba9756e1c","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":213,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"010e8e4e-f75f-4c03-a859-5654a5c66e96","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":213,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"2f5c91ff-7fe2-4c91-b273-bed2840def97","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":213,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"67788c5d-156b-4fc7-8043-3c38f2693051","block_type":"box","text":"interests of their investors.","page_number":213,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"b6a50302-8437-4ac5-b522-f25a9aa63f36","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":213,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"eaf20559-45da-40c6-a2cd-b8e4ef237bce","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":213,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"9287ef0f-d58b-4c62-ad6d-41c1c36468ce","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":213,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"5b2cb5c0-ecec-4ac8-97cd-08d532e630d4","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":213,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"615eae7e-1b0c-41e6-963d-bb039a57fe01","block_type":"box","text":"good-faith basis as methodology develops.","page_number":213,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"d6609605-94f7-4b47-9b55-0a8b1fff0ab3","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":213,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"ce30dfe3-6a5f-4d57-8a1c-0f1f2ad750da","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":213,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"dbbcc1bd-a3e9-486f-9742-9e2e959a9ae4","block_type":"box","text":"generate long-term financial returns.","page_number":213,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"5f707898-b07a-4a0b-9940-e23acbdffd6b","block_type":"box","text":"14","page_number":213,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"1694d61f-3032-412a-b036-6f83987b5753","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":213,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"117b0971-a5ea-4cb0-b939-337c28eb24c1","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":213,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"73609142-7495-40d6-ae51-459d0f112c5c","block_type":"box","text":"15","page_number":213,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"a6b917ee-f7cf-4305-9d61-c1996a8f58a4","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":213,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"d9a6316e-09dc-418f-8a2d-43db0a8d6943","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":213,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"586899cc-8398-4044-ab7a-ea7965be2694","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":213,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"4c98dae6-ca8b-410b-85d4-1716160758f4","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":213,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"48b935d2-d5a3-4006-842c-e4556e9e1a4b","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":213,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"21f45a27-e04f-459c-97eb-b6aead825055","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":213,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"3ad692fa-fdc9-42d2-97f9-0879e889f68a","block_type":"box","text":"12","page_number":213,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"5b47f325-f317-41a1-83ca-bf48aab5f49b","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":213,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"a9601e50-55c1-4b82-a1a3-00d2e4f41d6d","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":213,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"10464492-6c6d-4820-b322-de630af2d8ae","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":213,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"a7aa6891-18ed-46c7-a737-bb57ef4f4918","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":213,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"062af6df-a2db-4a8d-b4b6-52189e21e8c3","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":213,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"114ec092-dd3f-425e-9229-0ca0ac2d12d0","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":213,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"1563f4e6-204b-4ca9-aaee-2f8423d27936","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":213,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"3a18c18f-2d39-4fac-99ca-90b0262717c2","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":213,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"591ca9a0-b249-4d51-8de8-7fecceb0b601","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":213,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"f0eb73ee-d411-4cb9-8d39-f45c4b113016","block_type":"box","text":"13","page_number":213,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"8b9e6236-e4a6-4feb-9116-4a28122fe731","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":213,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"1920453b-1577-4124-9fb4-8ec45ad1157d","block_type":"box","text":"2025.","page_number":213,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"d990111c-6945-41b6-ad72-4c2ab1e3a2b4","block_type":"box","text":"14","page_number":213,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"dcfaf18d-b3d1-480b-b755-bc7cba1b405e","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":213,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"6ee62e17-2997-4866-b48d-a8a21d0611c0","block_type":"box","text":"2025.","page_number":213,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"6e2d4fdd-1fe3-4720-9693-9f3b5ac25909","block_type":"box","text":"15","page_number":213,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"efbe65c4-5529-48a4-bc32-b7a2d3e30663","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":213,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"47743e19-ac67-4d9a-ac8a-66783617cf41","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":213,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"4494593a-815e-4b18-885b-16a4228038b1","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":213,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"a0cd606f-d9ce-4e46-9eea-1af031ace757","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":213,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"ec22134d-b31b-4208-ba8b-2b8170a617d2","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":213,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"3cc554d2-696f-4a34-9861-2881e8e148c5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b0735732-703e-465f-8cad-16160df0990d","block_type":"box","text":"Global Principles | 11","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"cead5f7d-788c-4af0-8257-9326c093897f","block_type":"box","text":"NM1026U-5978945-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3bb5313b-823b-4baf-be72-bdcce9d3cc13","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":214,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"e1704f3a-0dd5-4260-8162-5ba8d4e28525","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":214,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"6513b269-b9ab-45ff-b046-b197f010ab3b","block_type":"box","text":"16","page_number":214,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"cc31a1ad-7c48-40d0-8949-c26d431cc693","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":214,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"6f6d45de-de0b-4a52-be82-9d8e3b817ac8","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":214,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"dc6a4f1a-d6ce-4258-b421-3998090541d9","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":214,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"3ccf875b-f5e2-463a-bf00-360837cead38","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":214,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"5a05f0da-2192-4840-94b9-ebe7ec37acd1","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":214,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"17338eec-38cc-4a74-87a0-77f3ee5d278d","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":214,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"c1b94af7-585f-4e8c-a27a-80dc52e4bc02","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":214,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"f5aa1063-2b86-4628-b0ae-de2d080afc64","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":214,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"e64f2a15-464e-41e1-add3-7c7e3d5c024f","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":214,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"4ea55a8f-77b5-4858-b267-fb81a2ad492c","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":214,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"e67d20ab-e31a-40cb-aebc-9a6dcc80396d","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":214,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"81ea645e-075f-4c68-b480-8c83348d3726","block_type":"box","text":"impacts.","page_number":214,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"101c264f-313b-41fd-a833-0eda304d817d","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":214,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"2133092e-befc-4d0b-9a1e-e0912da4b126","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":214,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"d3c50994-e285-486a-aeeb-5ade208347ce","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":214,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"ff7f7720-d384-4aa4-b42c-30ae0c5748c4","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":214,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"603cbc2a-66e8-4290-846a-a708f3bcbbd4","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":214,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"e69263ca-5844-46e8-bfcc-98591705307b","block_type":"box","text":"clients at the global and regional level.","page_number":214,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"ad4d2058-afe3-499b-bcc3-f38455181aee","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":214,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"687738e9-8bc5-4b1a-980b-d62dbbf8de41","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":214,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"4d3b69d4-26a5-4e5f-afb9-2f929c67577c","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":214,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"9efa9b4b-c9a0-4b91-a5f4-ae37af60eefa","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":214,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"56634813-e670-4f5c-a391-5e604e195cf5","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":214,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"e6b2b2ba-5947-4689-8922-d78bcd00b773","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":214,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"b77416a2-5b2b-4c78-9779-18a7206a32da","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":214,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"00730f71-3ccd-4e30-9078-8db1e9656df9","block_type":"box","text":"are independent from the investment stewardship function.","page_number":214,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"f4aefd44-2074-495e-9fe6-57db38732d23","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":214,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"82584cc4-0477-4754-9116-e4bd893c289a","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":214,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"d8e34dca-937c-443f-93f0-ce51ee6dafbf","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":214,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"5ff04347-1f3d-4508-98aa-252c28c6e99b","block_type":"box","text":"VOTE EXECUTION","page_number":214,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"1b902518-0368-405d-aa41-d00b39207720","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":214,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"d4591d50-0416-4745-86b0-804c89140c45","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":214,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"5a4d4458-ea10-41d1-a9eb-ce5dbd0ee59d","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":214,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"c887f34e-38e5-400d-81e4-206bf4c9ffd4","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":214,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"3dfc9742-c01c-40b4-88d7-d3ee284131e6","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":214,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"1799aaec-2aec-4e41-98e3-3074fd487915","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":214,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"8c633bb5-f4e8-48d7-a293-e8873c3226a4","block_type":"box","text":"management policies and procedures,” below).","page_number":214,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"1d107f73-b7e0-45b7-9dc7-abb47784f0ef","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":214,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"eec3c360-684e-42f9-a8bc-bc26051fb77d","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":214,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"62b8b8f9-0aef-4a70-b12e-d1d6b329ba75","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":214,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"6c9f9abc-bd7c-4dde-9a5e-ae72f22e6b57","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":214,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"bc1d6c3e-8652-46fb-80cf-26441185a1e3","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":214,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"fd10966c-5a89-467b-8cf7-d979491efd8e","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":214,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"477ca554-28e4-46c8-ab9b-d103796738c2","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":214,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"c9a43b10-7b3c-49c5-82a4-7cd2d55354de","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":214,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"bddcc373-37bf-4af0-bf50-081ff3f3c1cb","block_type":"box","text":"16","page_number":214,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"29384fe6-c0df-4023-b472-483fa4439da0","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":214,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"bc2c4f86-771a-4119-b468-96d2e1b3727e","block_type":"box","text":"December 2025.","page_number":214,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"2f0c29d9-1ba8-44ca-88b8-05ea56900c53","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d4502d05-c4e1-4b0a-8427-7776365020f1","block_type":"box","text":"Global Principles | 12","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"8556eeca-ea5c-45e1-847e-b90fd5380ef9","block_type":"box","text":"NM1026U-5978945-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b72d5057-9617-4d04-a731-7385986e952f","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":215,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"f96665de-db62-4325-806b-7cabb08e2e24","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":215,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"36307223-e377-484b-8539-a639fb983fa2","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":215,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"b05a44b9-7cf8-4ba4-9780-70966f8adaf1","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":215,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"7c859c0d-1ffc-4700-a374-3543f7a4754e","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":215,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"f9da8c49-4db8-4f3c-84c7-2585061bbc1c","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":215,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"53270645-f8c0-40bf-a0de-75bc2151c8ad","block_type":"box","text":"enterprise-level vendor management activities.","page_number":215,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"d9b3105c-d27d-4a83-9c93-52a510d6a682","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":215,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"825a50e6-a29c-4b77-9147-2b7541fbf0eb","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":215,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"268cc055-cccc-4bdf-a0ca-b6264f247e8a","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":215,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"e012eba4-7fc8-448c-8702-a7eea8cebaee","block_type":"box","text":"BlackRock employees.","page_number":215,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"697ef747-323f-4d4b-bd45-0ae420c48868","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":215,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"019da734-e1cf-4eb1-b61b-f398cb1be23f","block_type":"box","text":"SECURITIES LENDING","page_number":215,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"06426240-c0c5-4771-a4f7-0a7f402fe945","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":215,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"89b88349-f2ce-4b51-b88f-86e38e79fe26","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":215,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"7a811407-e252-4765-8e0d-47cdf3447c37","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":215,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"8e50752a-8f58-4907-a7e1-afeb9332473a","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":215,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"eccc2c9a-7416-4a87-950f-c5376a5418f6","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":215,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"3c728fd9-3385-4ac1-b131-2f436ef99ce5","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":215,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"577551ce-cf1f-4ae7-84f9-460949977a47","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":215,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"2ab651e6-475d-47be-85bc-8035563d3496","block_type":"box","text":"in helping them achieve their investment goals. 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Under the Guidelines, the dedicated team","page_number":222,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"56afa71b-daf3-4e58-9fdc-29f29494d5d5","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":222,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"58066633-11e8-4126-a051-ac732609f63b","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":222,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"1f998bf5-2fd4-4830-8480-f1d3a066ebdf","block_type":"box","text":"Voting approach under the Guidelines","page_number":222,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"ef38e4f6-684f-40dd-ace0-54e1eaa032d8","block_type":"box","text":"12","page_number":222,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"c2e4f99c-b3ba-4a8f-aca2-ce61b6f17b9e","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":222,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"9f4a2e1a-2f49-4623-9e93-b18220abfeb7","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":222,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"8d92e001-7fe6-48ec-96c8-55d2e4518e0f","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":222,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"c2e86f80-fd41-421f-88f1-7c7bf70fa104","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":222,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"a89e4c6f-70ea-4ef9-a79f-302d2118649e","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":222,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"625dd972-e38e-4b96-9da6-15a05866c559","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":222,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"53929d75-f7f7-495c-b499-c57ddad65b34","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":222,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"de86bb3f-13d5-447d-a7b9-76627b24c7ba","block_type":"box","text":"Corporate Disclosures","page_number":222,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"0b1f4e04-9021-4c10-83d8-5537b3abd4ad","block_type":"box","text":"13","page_number":222,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"0c9b94e4-c394-4d55-91d3-61d8e94728e4","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":222,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"6f822aa4-ab63-45a2-9b7d-a0c45a5d3626","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":222,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"aead51e1-6191-4ddc-a706-9da00dc47ac6","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":222,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"af4553a7-b91e-4aec-9cfb-e920954c15af","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":222,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"b9e76ba9-58cf-4eac-8548-66bfcae36b8c","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":222,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"82ce8905-282f-43f2-86f5-af8353527dca","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":222,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"ae8da02a-e7f8-4390-bcec-a29b6cc6e699","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":222,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"a823a3dc-e719-4fb4-ac2a-edad0241dc5f","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":222,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"c067e64c-71d2-43e8-a95a-c749a21cb766","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":222,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"1033ce8f-6626-42ce-b69a-b4575904b538","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":222,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"58016751-bae3-4d8c-87ed-07721486bad8","block_type":"box","text":"14, 15","page_number":222,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"17a8a32c-b12e-4465-86cc-0588ad8b8313","block_type":"box","text":"IFRS","page_number":222,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"d8edb73f-513c-441a-b6fa-8add856dc7ad","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":222,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"68c8953b-6d1f-4e89-b24e-86e642ddce7e","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":222,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"30ef2ac4-7206-4921-b7d5-b168383a0b0b","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":222,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"f8fb23a4-baf7-49de-8680-2ff27ce11758","block_type":"box","text":"and assurance standards are developed.","page_number":222,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"5c2b1805-830d-4738-88bf-d8469eebd8a3","block_type":"box","text":"12","page_number":222,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"5e096412-0d88-4717-881d-b979491392bb","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":222,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"1a909ab1-383f-4e58-afec-0521a70a7120","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":222,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"f542aa48-1b87-413b-ba0c-11f49e1f3f2d","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":222,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"da8e9c12-a216-45ab-8c75-8063f414e9c9","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":222,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"a6202733-aa5e-4bd0-af53-de00fbcca2a8","block_type":"box","text":"13","page_number":222,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"07e0988d-e255-48c6-ac6c-e0fa4022b15d","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":222,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"91af0d31-e51d-4dc4-a90c-8973de040d9e","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":222,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"5daee896-5ba5-4d64-9bd5-d3972b110eaf","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":222,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"5fffa0e9-0743-44b3-80e6-100902d21c79","block_type":"box","text":"14","page_number":222,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"54971d9d-8056-47ea-b583-ba075c8a82ed","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":222,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"9024adab-a52d-4991-9287-540126a5c873","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":222,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"17aa0bb0-e5d0-43fb-af99-4e8ebf8e8fc6","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":222,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"e3ec5344-1993-41e6-8d72-0c61afb939ec","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":222,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"3f5b5d4b-9ac9-44be-b303-05bbeb420554","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":222,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"3481fdc1-f7ac-4935-abb7-0fa9e6684a4a","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":222,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"07a30a86-8043-4205-9ac1-68b5b7a2f217","block_type":"box","text":"15","page_number":222,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"cb05a644-afe0-45ba-b84d-61145bc1ead5","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":222,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"6cdc7737-5311-4ed4-8f14-4f4c7094d7e5","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":222,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"4a07df70-3274-45e4-9f78-5850e92e392f","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":222,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"4fdc4de8-b620-41e9-9b5c-f3972b82f864","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":222,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"2f8eb423-8ec3-4f6f-83cd-229bf69f66d8","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":222,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"5bad3836-6368-4a04-95de-67723f331af8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"93daddec-b917-4f59-96a7-46cf1db0355b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":222,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"523875e9-3f1b-40ab-b96f-cbec39e0bbcd","block_type":"box","text":"NM1026U-5978945-222/232","page_number":222,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"eef8ad94-f9da-4ea0-9ce8-9fcc54eba94c","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":223,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"a823c902-fc10-4b76-a028-7636fb8727f8","block_type":"box","text":"16, 17","page_number":223,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"ceb8b4f3-9e15-4bd2-9971-e56f09f445d6","block_type":"box","text":"In addition, the dedicated team looks to","page_number":223,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"9e360fa3-6e02-4377-8dc0-d081d0988bee","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":223,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"7aa28e7f-b188-4e1b-b9c0-35cee37c24da","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":223,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"f67f7126-675d-48a2-b76c-53580bfb7303","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":223,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"07dd55fb-674b-449d-a175-99af1d3fbbcd","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":223,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"426b5722-e969-4484-ad8b-87a83cea8d68","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":223,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"87d94a88-8376-4586-b236-7243598d47d4","block_type":"box","text":"18","page_number":223,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"c2e9e398-d7e7-40e6-afbd-caf8e1f03513","block_type":"box","text":"However,","page_number":223,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"2484f5e0-6d3a-4920-b4c5-2c24b08f1105","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":223,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"eaab1483-057f-41ba-a3c5-956f519c539d","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":223,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"6d6ccf95-eae1-4d99-8441-297f4945b6d0","block_type":"box","text":"their decarbonization targets. For some companies that play an important role in the low-carbon transition, scope","page_number":223,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"4ad472a4-0beb-49da-886f-f473bb731317","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":223,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"c2896ddb-c551-427f-82f5-012daa1f55e6","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":223,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"5626c69c-4a7c-4754-94a2-05ceb3030e5e","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":223,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"9e331979-e2f4-4529-bacd-6a49adf261e6","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":223,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"711b71e4-8665-4d1c-b88f-6a984ac6c55d","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":223,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"e01c4852-fc0e-4bdd-96a0-53ce132269cc","block_type":"box","text":"transition risks.","page_number":223,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"18487ba3-2f04-486c-afbc-1d3fd7f5a941","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":223,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"cf3a8ba9-73b8-459c-b7a2-df6ef5853365","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":223,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"deef3dde-4923-4b6c-babd-1d24bc9a58db","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":223,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"e866446e-afba-4ffe-8949-e11600ca86b6","block_type":"box","text":"Transition plans","page_number":223,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"a9b13344-aa2e-4138-bfe8-a7264d6e7dc0","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":223,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"983bf274-f083-43f7-b7d6-e0ee9fe48926","block_type":"box","text":"transition strategies. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":223,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"902de5eb-6f3f-4176-9ba9-e0a8f3567a75","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":223,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"89e3f6f5-f89e-478b-89da-bdbbf9d939a0","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":223,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"f4dc27e1-895f-420b-8c42-41de80dcca96","block_type":"box","text":"18","page_number":223,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"77c99fdc-f97e-481c-9aef-e071d2bbf059","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":223,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"9aa8b65a-a656-4ee9-805d-f69c2a99334a","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":223,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"14669b68-e632-49d3-a1cd-99eaba72a6ab","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":223,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"1fe16228-9c35-4a5b-a811-e70e0b81039a","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":223,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"9bc317e6-147f-4ea1-a7d9-6dff864dca27","block_type":"box","text":"material to their business models.","page_number":223,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"f668b821-0329-47fd-afd2-cfe56071f4be","block_type":"box","text":"19","page_number":223,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"bfa4ad01-5bde-409e-80e3-dc332005e50a","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":223,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"3b8c81eb-54af-42cf-b3d6-4f6892e8ad4f","block_type":"box","text":"December 2025.","page_number":223,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"08aba5df-0440-40a4-947b-bc202adf080b","block_type":"box","text":"20","page_number":223,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"c160a1b7-2e92-4682-810f-2e29fa0574d6","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":223,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"6a67544e-d88c-40a2-958a-2b8f91ec5d4e","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":223,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"3612ce86-702a-4fb5-ae58-244db7d5b3ae","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":223,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"a4d746e0-c198-4421-9c0c-5c0dbaf46a2f","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":223,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"f5a7b5a0-b54b-4afb-a193-6ad09a7bf29f","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":223,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"9e3d22cb-043b-4df9-bb82-d54cb189be7b","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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The Guidelines consider the whole board to have responsibility","page_number":224,"box":{"x":102,"y":148,"width":796,"height":11}},{"id":"019821b5-20ac-4894-a91e-169b46bcfde8","block_type":"box","text":"for oversight of the company’s long-term strategy, including those aspects related to the transition to a low","page_number":224,"box":{"x":101,"y":163,"width":765,"height":11}},{"id":"4528ab32-3405-4e82-a8c9-9b2b127e8eac","block_type":"box","text":"carbon economy.","page_number":224,"box":{"x":101,"y":178,"width":119,"height":11}},{"id":"66b538d1-f3ac-42cf-88ae-03a5e912d89c","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":201,"width":6,"height":5}},{"id":"6a7c02b6-87c7-40ca-863d-1e3c27b126b0","block_type":"box","text":"Management has established a robust low-carbon transition framework and long-term strategy, with clear","page_number":224,"box":{"x":102,"y":198,"width":747,"height":12}},{"id":"3ac0e88f-be21-47b1-a43b-bdbf53408372","block_type":"box","text":"accountability for delivery by senior executives.","page_number":224,"box":{"x":102,"y":213,"width":333,"height":12}},{"id":"ae3d6585-91f2-4adc-b02c-b15b591f6cb0","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":237,"width":6,"height":4}},{"id":"5ccd2b04-b43f-4fbc-995d-31881748c90c","block_type":"box","text":"The capital management strategy explains how the company allocates investments to (traditional and next","page_number":224,"box":{"x":101,"y":234,"width":758,"height":11}},{"id":"6784c5f8-274c-4e4f-8d7b-09316ae5434b","block_type":"box","text":"generation) business lines and innovation, and returns cash to shareholders, consistent with the company’s","page_number":224,"box":{"x":101,"y":249,"width":772,"height":11}},{"id":"c1ece5da-e24d-4a24-aee7-1276095755b1","block_type":"box","text":"stated low-carbon transition strategy.","page_number":224,"box":{"x":102,"y":264,"width":260,"height":11}},{"id":"49917155-1ab3-4233-bf03-b9c129b27b68","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":287,"width":6,"height":4}},{"id":"606d0f84-f3d5-4b36-97db-cd5da8564066","block_type":"box","text":"The climate and low-carbon transition risks most likely to significantly impact the business are integrated into the","page_number":224,"box":{"x":101,"y":284,"width":807,"height":11}},{"id":"59c74053-f1a1-4112-a6de-867c199a5d04","block_type":"box","text":"company’s enterprise risk management processes and reporting.","page_number":224,"box":{"x":101,"y":299,"width":465,"height":11}},{"id":"91c743f5-4ee2-4de4-8ee6-703b45e65d22","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":322,"width":6,"height":5}},{"id":"376a6171-133b-42cb-acce-9555e75bae39","block_type":"box","text":"The company has set scope 1 and 2 GHG emissions reduction targets, science-based and independently verified","page_number":224,"box":{"x":101,"y":319,"width":804,"height":12}},{"id":"49157ec9-65b1-4a40-8b7d-285c9063e512","block_type":"box","text":"where possible, against a baseline, that are consistent with the ambition to limit average global temperature rise","page_number":224,"box":{"x":101,"y":335,"width":806,"height":11}},{"id":"6b2f7756-ab66-49cd-aec9-b6b042644cef","block_type":"box","text":"to no more than 1.5°C above pre-industrial levels.","page_number":224,"box":{"x":101,"y":350,"width":354,"height":10}},{"id":"85928f15-9b70-431e-9221-4a2c4590fd52","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":373,"width":6,"height":4}},{"id":"f93adc5c-6513-4118-92e7-7d537918a9b9","block_type":"box","text":"There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over time and its","page_number":224,"box":{"x":101,"y":370,"width":788,"height":11}},{"id":"2eca17a0-a365-4e82-a71b-7b50d6207b97","block_type":"box","text":"long-term low-carbon transition strategy.","page_number":224,"box":{"x":102,"y":385,"width":282,"height":11}},{"id":"9154efba-c64c-4302-aa0f-06324f37e29c","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":408,"width":6,"height":4}},{"id":"0e60d356-34b2-4fc5-a4ee-5a8d38127520","block_type":"box","text":"The company is monitoring its most significant scope 3 emissions and disclosing these where it is confident in","page_number":224,"box":{"x":101,"y":405,"width":790,"height":11}},{"id":"b3c8849a-166d-4915-9456-2b8cc8cbca03","block_type":"box","text":"the data. Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":224,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"923a2ec0-3232-40a4-962f-b07fae45d3d7","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":224,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"c77a3c11-2dc9-40bb-92d1-e47ace51398f","block_type":"box","text":"with the different constituents in their value chain.","page_number":224,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"66aa10ba-ea49-42fb-9ea5-a5f425db42c4","block_type":"box","text":"21","page_number":224,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"099e1f75-afef-42be-824c-fba51996c4b3","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"9b8d332f-c4ee-4f9e-b277-8491698a8b72","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":224,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"7a4bb6cb-ce4f-420b-b457-2a6e34d13646","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":224,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"f316b753-713a-4d3f-bd37-020ea08c95f5","block_type":"box","text":"22","page_number":224,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"3fb63a09-7cea-40e4-89f5-9bad5ec8ab78","block_type":"box","text":"The dedicated team looks for","page_number":224,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"d44457fe-e645-4f1c-ac58-e7079dc062e6","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":224,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"e1e18716-92ca-48ee-8658-d1317855a2db","block_type":"box","text":"related to the low-carbon transition.","page_number":224,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"95345c86-6e26-456b-8105-cf78637b151e","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":224,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"b95b708c-05c0-419f-8f1b-fd739a7f71b2","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":224,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"c705dc8b-2402-4d7f-87ec-f930b9b984a2","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":224,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"20664db4-83f8-4f89-8bb4-4af16df6b44b","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":224,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"96c942a3-d70e-4682-bbf7-e63100fb5848","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":224,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"7d264567-d73d-4b9f-86ed-ca87e55d18f3","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":224,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"114496ba-1b8c-40e3-825a-988d187b7dfc","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":224,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"18191311-a698-4f4f-a8e8-84ee05e55e49","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":224,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"d5697bcc-05c8-40a9-996f-7ae29427b7f3","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":224,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"c55c7a44-762b-4030-bee5-648f668f934f","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.”","page_number":224,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"674a2521-6708-4afe-bb6c-6f6f5cc440e2","block_type":"box","text":"Website accessed in December 2025.","page_number":224,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"2b23f4c0-a8b4-460b-a8e6-c606f35f12c8","block_type":"box","text":"22","page_number":224,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"6b722fec-2ef9-4116-a419-cb63125d287b","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":224,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"b7f89440-1359-4c39-b648-fc676749c082","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":224,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"f229a99c-dce2-4549-9811-fba6d42d0146","block_type":"box","text":"23","page_number":224,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"a409263d-5ebf-4376-bb83-edef6c75d180","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":224,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"1f36729f-9846-40c7-8e32-e3650f4142b0","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":224,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"bc2f949d-97b0-4e4e-b56e-e37454b94e92","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c2450bfb-30b1-4748-b8cf-a24f8f579588","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"5d62f09f-5129-4c75-adc8-cfe624ffa88e","block_type":"box","text":"NM1026U-5978945-224/232","page_number":224,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2fa522f5-bd10-4c22-975f-33d9f57ccaa5","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year, and the","page_number":225,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"7d04e18c-4ff3-4bfa-9ee2-e78f81607c1c","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":225,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"69dda5e0-7c9e-45b3-aed7-138d7e311384","block_type":"box","text":"may escalate by not supporting the re-election of additional responsible directors.","page_number":225,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"0d1c465a-a4ab-418e-8a23-b80f8ff443d2","block_type":"box","text":"24","page_number":225,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"4862d022-f041-440e-952d-5b3c211499df","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":225,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"99ee0659-33c8-4efb-8e09-5169014b610d","block_type":"box","text":"In certain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":225,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"e0c38f27-0e2d-4b8c-89d6-da01f488d3f0","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress reports. The Guidelines consider these","page_number":225,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"5e7284f5-f785-4271-8902-22bd16d47013","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":225,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"6331afb3-d319-4a24-bb16-34109784b095","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":225,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"1d669643-5157-4c01-9196-ec26d8c1c693","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":225,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"2f9f6289-f67a-430a-9734-334f6e1bf10a","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":225,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"7660929c-a276-4f8e-a82c-eb1a529dfca6","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":225,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"0d9833ba-9245-4c86-b0a4-3ff30367e35f","block_type":"box","text":"transition plan and targets.","page_number":225,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"a287a688-183f-4a9d-b01a-74fd7934ea90","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":225,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"dd94b44c-ba3d-4f14-adab-090b3cbbe6c0","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":225,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"c40ef8ba-90a5-4ca1-87c1-d2ca6632caeb","block_type":"box","text":"long as certain requirements are met. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":225,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"8edb7537-6957-4361-9f05-2deca22031d6","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":225,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"b5ac6103-a539-487c-8c0e-6a09f5d9ae8d","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":225,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"ed1fa0ef-274b-4591-9e82-ee929ce6c07b","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"0a8ce125-d766-47d9-9d2d-8db0a64ef522","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":225,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"14e52f31-1916-460f-a985-4214ab465099","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":225,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"d9c81402-c205-4c52-9806-f35f057ee3ad","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"1eb26256-45ae-49cb-afe4-9b4b4c33ede0","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":225,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"bf664e98-e33e-4aad-b8b9-41e804b0f619","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":225,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"c39d9c80-ea65-484c-8bb9-b43062776b40","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"2814d5e2-56d5-42ed-b687-39ff1c00cc8c","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":225,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"1b4ffa78-5d02-40b1-903e-9c2f059ce7d3","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"a0cca528-23bb-407b-881f-09b62d8b65be","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":225,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"a52523e1-24c1-4fc5-942d-e0fce29e1a6f","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":225,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"bc3d4947-1681-4d2e-93c0-700e24c231c0","block_type":"box","text":"25","page_number":225,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"518935b4-eec1-42a8-86d9-cc522344526f","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":225,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"cac3e808-2dd6-48f0-be3b-6da088ad50c2","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":225,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"cc99fd58-9797-4d72-a7c5-25d8ff1cd8cd","block_type":"box","text":"RELATED MATTERS","page_number":225,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"f9ffa16d-219d-4f53-b744-c562f5beb194","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":225,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"71888c90-1293-4020-b0e3-a35f6e3f26e3","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":225,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"16b3a0fe-b3cf-44d1-a144-d0e8dc607775","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The dedicated team will continue to take a","page_number":225,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"3c0cf030-d55c-46c6-a61b-1a19473126fe","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":225,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"991fe243-2d8f-48c8-922f-ce7fc289765a","block_type":"box","text":"25","page_number":225,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"16ac8cb6-1f01-44fb-aa2d-879fc63a751e","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":225,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"3c5790c2-3e62-426e-99aa-0957dad82772","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":225,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"b5033994-3d81-446a-9edc-02923874238a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0a7baaec-3f44-42a1-b974-96bea2cf4f38","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"27d3e1db-e66e-4314-8cdb-88aa29d9b3dd","block_type":"box","text":"NM1026U-5978945-225/232","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4b4177ec-0b2a-41ce-bf23-3b0ba126a8d6","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":226,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"94a84a51-ba53-4489-84f2-fa6037cd5bf7","block_type":"box","text":"strategy and risk management.","page_number":226,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"6abbe1ab-0e08-43f4-b902-7816fb8921a3","block_type":"box","text":"Auditors and audit-related issues","page_number":226,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"e36ab018-cab5-44e6-bf8f-7d02a5bb1712","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":226,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"4f702892-8aa4-47df-8eb0-8608fbc1da46","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":226,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"eeacddc9-808e-4ed4-bcf4-019d59e29003","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":226,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"cdff6075-c83b-40ca-959d-0b82076e38db","block_type":"box","text":"context of its audit report. 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These include a company’s impacts or dependencies on natural capital and key","page_number":226,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"e4317491-005d-45b1-aeb2-f682e86464aa","block_type":"box","text":"stakeholders.","page_number":226,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"0f37207c-cc2a-4dc4-94ee-f930f5f9b5cc","block_type":"box","text":"26","page_number":226,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"3bc27073-feb0-4437-a06d-0d1cfb1afe97","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":226,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ef7b967b-4059-4048-8eaf-d63a4a7d3377","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":226,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"2adf6397-5d30-432f-bb57-dbb0bc1630d9","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":227,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"176dfa0f-dac0-4a63-a5f9-4c71d65d246b","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":227,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"de406391-9aa0-4afb-a617-f58b8244f3ae","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":227,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"1f1b1ecf-e38d-4a65-b4ef-2f4c4af93217","block_type":"box","text":"Decarbonization:","page_number":227,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"db8a2760-7f07-45a6-bc60-e082d99c4c00","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":227,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"229bcb92-67e0-451f-b73d-9dbf207ac917","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":227,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"eb2b35b1-bab9-48f8-9178-34c2136cb637","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":227,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"2355d55a-1ab5-402d-83b3-5972ff767594","block_type":"box","text":"e.g., methane.","page_number":227,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"2372327e-b1d3-45e8-9b4e-ad1ec63f6392","block_type":"box","text":"Climate-related risks and opportunities:","page_number":227,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"1216d609-020b-4c30-84fe-0c2c23651689","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":227,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"cc89c250-3a2b-4394-b913-4e84f897fad0","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":227,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"f768fbe4-d781-481b-b244-73f0ea858b7d","block_type":"box","text":"to physical climate change.","page_number":227,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"7b1178a3-de4a-4a38-98df-2ea33a4c205d","block_type":"box","text":"Climate-related transition plan:","page_number":227,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"59bb1eac-6af7-4efe-b515-690e56116524","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":227,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"7f1752ef-3b85-40d0-b4aa-f09e00f90701","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":227,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"3ff644cf-741e-4827-901f-687172b7fcca","block_type":"box","text":"greenhouse gas emissions.”","page_number":227,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"100165a2-39ef-4038-927d-3d21c94dc18d","block_type":"box","text":"27","page_number":227,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"f05f1635-f0e7-4a4f-ad96-3e9e7322ed43","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":227,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"a5c3a0f0-caa7-4681-b462-93f318b42961","block_type":"box","text":"Targets that “","page_number":227,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"4e3e166c-6b0a-4285-8a72-76a4f2a62df4","block_type":"box","text":"are in line with what the latest climate science","page_number":227,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"c4c8604d-3a89-4c53-9ef6-1dd071d006a4","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":227,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"b3bfb8d9-04d3-475e-a811-b6424869d80c","block_type":"box","text":"levels. 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[It] is defined as electricity [steam,","page_number":227,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"3e5756cc-30da-453f-9208-3629ea8b8eb0","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":227,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"066be9f7-a5c9-48d4-9411-8264e8f92429","block_type":"box","text":"30","page_number":227,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"dfb9d3e8-cba9-43d7-a7be-ca58902ae70b","block_type":"box","text":"Scope 3:","page_number":227,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"d1ad47a6-4d91-4f73-bd57-c3f63495d9af","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":227,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"1282ca6d-361e-49a7-ad3e-559590e704c0","block_type":"box","text":"of all other indirect emissions. 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